You can have Dynaudio without the touchscreen...
Premium 7 = what is in 2009s
Premium 8 = RCD510 what is in non-navi 2010s
Like so many have said, go into the glovebox and see if you have the orange tab, if you pull it down the MDI is there- you need a cable which can attach to an iPod (there are many cables avail. for any device) and you can play the iPod through either Premium 7 or 8 radios. If you DO NOT have the MDI then you will have to use the aux jack with an aux cable.
You should also consider upgrading to RCD510 if you don't need navi- its pretty good and there are some here in the classifieds.