Does Bluetooth have the necessary throughput to send 1-3 MP of graphics data with approx. 10+ FPS to a car LCD display? Even if this was possible, it would drain your phone's battery considerably, which means you have to plug in your phone nevertheless to let it charge. Aside, attaching the iPhone via cable will be straight and much less cumbersome and error prone than pairing over Bluetooth.

No it doesn't and it would drain the battery anyway, plugging in is sensible, plus then it can charge the device.

That will be added in the second iteration, as a new innovative feature.