I'm at a loss to explain some of the poor reviews for this product. I've been using mine for a week or so now, and it's excellent. Sound quality is clear, it charges my iPods fine (I have a Touch and a Nano), and it's not too bright next to my bed (some clock radios are so bright they keep me awake). I used to have a much more expensive speaker dock, but it broke. This one sounds at least as good, has a clock radio as well, and costs less than half the price. Also, it seems to be fine with my friend's iPhone as well - it shows a message about not being fully compatible, but as long as the phone is switched to offline/flight setting, to me it sounds exactly the same as with my iPod.
Edit: I've now tried it with iPhone 3G and the new 3GS and can confirm it works fine in flight mode. It also works perfectly with the latest Nano and Touch. If you find your particular model of iPod doesn't fit perfectly with one of the supplied inserts, use the one that came in the box with your iPod - that's what it says to do in the instructions! Also, if you find the remote doesn't work, make sure you have removed the plastic battery protector.