Same question here. I just bought an 04, and was wondering if I can update the software it has from the factory.
Is the $200 for software or for a Toyota Nav system? I would pay $200 for a Nav system installed in my 2010 level II.
The plus for the toyota NAV is the large screen, and the traffic lane split dealio. It's also going to be rather hard to steal, has no extra wires to run, etc. Convenience seems to be the most satisfying reason to have the built in NAV. Beyond that, most handheld units will perform better as far as getting your to your destination if you live in areas outside a city. Plus, they're far cheaper to maintain for a subscription.
Actually, aside from being far less expensive to buy and maintain, the Garmins, Tom Toms, etc. are far more intuitive to use, have a better POI/address file and work with cell phones in a much more integrated fashion. I made the mistake of getting built in NAV, and would strongly advise against it.
I've never updated the NAV in my '04 either, for the same reasons -- too expensive. However it's my understanding -- would need to be confirmed though -- that the upgrade includes not only the NAV system, but the other stuff that's controlled through the LCD screen like climate, audio system, etc. Not that there's anything wrong with those systems though. We did buy a hand held Garmin that we use in our other car, and I use on my bike -- and we take it with us in the Prius too in longer trips.
Some people say, "If you know where to go, the DVD, which works on the Prius, is available via torrents on various sites."
