Thanks for the responses.
The bluetooth connection is fine as a backup for now, but it would be nice to have the full functionality of the iPod connection which includes displaying tracknames, artist names, album titles and album picture on the touchscreen. You can also look through playlists, artists etc without having to pick up the phone.
With the bluetooth you just get play, pause and skip buttons, with (I think) a time elapsed on the song but no other track info.
Ugly Mongrel - I don't have an iOS6 phone to try out unfortunately but will try and track down someone who hasn't upgraded yet!
Beerman - The cable is genuine - I specifically went out and bought a genuine one from JB Hi Fi afte reading about iOS7 / non genuine cables.
I will bring it up with the service people but not expecting them to be able to do much, but it would be good to at least get confirmation that there are issues with iOS7 and it's not just me.