There has been a lot of confusion surrounding Pioneer's solutions offered to address the hardware changes that were made to the iPhone 5 when it was released and the limitations or improvements gained from these changes so I am going to detail them here and why these changes were made in the hopes that all confusion can be eliminated.
First of all, screw the Pioneer CD-IH202 i5 cable option. You don't need it to get the same results with any standard HDMI cable and the lightning to USB cable that came with your i5. You still need to purchase the Apple Lightning Digital AV Adapter to get full function. Alright here are the different options you have and what you can and cant do with each of them.
No video/No App Mode option: Here you can use the cable that came with your phone and the Apple 30 Pin to Lightning Adapter. You will use the 30 pin legacy iPod/iPhone connector from the unit with the Apple 30 Pin to Lightning Adapter. This will give you access to the built in iPod app on the unit as well as access to the Pandora app as well as charging functions all with album art and full title options. You will not get video or app mode functions with this option. All control functions to the iPod/Pandora apps is done over USB with this option. BT is not affected with this option and will allow full hands free functions.
Full video and App Mode option: Here you will need any Lightning to USB cable (the one that came with the phone) and any HDMI cable as well as the Apple Lightning Digital AV Adapter. The 30 pin legacy connection is no longer used. This will give you full function with all features pertaining to the i5 on the unit as well as charging functions but will disable the built in iPod app on the unit. You will retain that function through app mode with the CarMediaPlayer app. With this option all audio/video will travel down the HDMI cable but all control functions of the apps will be over BT instead of USB. You will also get the ability to mirror the iDevice home screen with this option. Hands free functions are not changed.
Hope this has answered your questions.