Some of the features I have listed out above may be handled by the Bluetooth software, which seems to be from Parrot, although I cannot actually confirm anywhere online that the AVIC-Z1?0 series really does use Parrot for their Bluetooth integration. Here is a break down of the first step.
Lets start with the microphone.
There are three broad choices for a microphone.
non-noise cancelling Mic
differential port passive noise cancelling
Multi-microphone with active or passive noise cancelling
A non-noise cancelling microphone is just what it sounds like, a very simple mic that takes in sound at a single point and transfers it to an analog signal. This kind of mic has a very high signal to noise ratio. Inspecting the mic that came with the Pioneer, I believe that even that mic is not of this low basic level, although listening to all the mic issues with the Pioneer products it makes you wonder.
Differential port passive noise cancelling microphones have been around for a long time, (60+ years) and at first glance this appears to be the kind of mic that has come with the Pioneer. It is also the technology that is used to make a mic more directional. Basically, there are 2 openings on the mic, the opening at the front, and another opening at the back, behind the diaphragm. Sound enters both ports, and if the sound pressure wave was exactly the same through both ports, it would completely cancel out the signal because the pressure wave would be identical pushing on the front of the diaphragm and the back. Ambient sound, or noise is assumed to be coming from all directions more or less equally, while the signal, your voice, should be coming directly in front of the mic, causing a much larger pressure wave at the front than at the back ports. If all ambient noise was entering the front of the mic and the back ports with exactly the same pressure, while your voice was at a higher pressure on the front opening compared to the back this would completely eliminate all noise. Of course noise is not entering the front and back identically, so it is still picked up, but a good differential port passive mic will dramatically reduce the signal to noise ratio.
There are several things that can be done to make this kind of mic work better. Increasing the distance between the front port and the back port enhances the directional signal by making the pressure gradient from a signal coming from directly in front of the mic all the greater. You may recognize that this is the same thing as making the microphone more directional. Good directional mics are long and skinny. Of course, most people don't want a long skinny microphone in their car.
Finally, if ambient noise is not consistent in the environment then this type of microphone performs very poorly. If you have a audio signal that is very strong behind the mic, or directional from one side, it will make a large pressure differential on the diaphragm and not be cancelled out. Lets think of your car environment. If you put the microphone on the steering column in front of the dash, you may think of this as a good location because it not a very noisy location, and you may be correct on the noise. But most likely, with the back of the mic close to the instrument panel, all the ambient noise in the car will be coming more strongly to the front of the mic, making it have the same pressure differential that you are trying to create with your voice, and therefor not being cancelled out very well. Now think of a position at the headliner, right at the edge of the the windshield. this may have the opposite problem. If your vehicle generates a lot of wind noise at the windshield, then this noise will create a larger pressure differential on the back of the mic, and also be picked up and transmitted to the analog signal. It doesn't matter that the larger signal is on the back of the mic. Is there a position in the vehicle that will have most of your background noises become uniform to the front, sides and back of the mic? Where ever this magical spot is, is where you want to position your mic.