I'm not sure how the problem bit and I are having can't reside with the units? Like I said, I tried my friends iPhone with 3.1.2 and that doesn't work. So it's not just my phone. And it won't sync my fully loaded 5th gen iPod after 5+ minutes.
So the probability that Unit is Defective > My Bad iPhone + My Bad iPod + My Friend's Bad iPhone
I'll try VR cataloging more of my friends' iPhones over time to truly isolate the problem, but for now it's looking like it's the Z.
I still like the unit and enjoy it a lot and don't regret my purchase, just a bit bummed out that it's not working 100% correctly. (And even if there is some secret solution, I as a consumer shouldn't have to hunt around for it through hours of trial & error.)
But I'm fine with waiting for an upgrade and have no issues paying money for it. Pioneer needs to feed their families, too. 
(And I forgot to note earlier, I am making sure I am hitting OK on the map screen first thing when I get in the car.)