As for playlist display, that's covered in AVRCP; for general video output, though, you've a technical point. My use cases generally involve being in the car less than an hour, with power available at both ends; you don't necessarily have to jack in for power, and with AVRCP, you don't need dash velcro; you could leave it in your pocket, throw it in the console, etc.

But you've got a point with the pairing issue; crazy how something you just do once can be a source of so much frustration to people, but it is. (And it's not entirely fair to suppose that Apple could have made it just work, without sacrificing compliance.)