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Mine also has a small screen and bluetooth. The radio has a "Bluetooth Audio" setting. You can choose that setting to pair up your music device - in my case - the iPod touch.
My "iPhone" is a dumb phone and an iPod touch. The dumb phone is paired with telephone only, and iPod touch is paired with Audio only. I can choose "CD/External Device->External Device->Bluetooth" to play Rdio music from the iPod touch. When I make phone calls, the music would go off then come back when the call ends.
The only problem is the iPod touch doesn't automatically re-connect next time when I get in the car. So most of time, I just use the sync cable to connect the iPod touch. The iDrive plays Rdio songs and shows album art on the screen. But I can't use iDrive to pick a playlist or skip a song. When I do that it switches to Apple's Music app.
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