I'm not 100% positive, but I believe the answer to this question is "YES".
Here's my reason for saying yes. I have the iPod cable installed in mine, but it it not controlled from the "SAT" button. I also have the Auxmod installed on mine, and both the Auxmod and the iPod are controlled by the "MEDIA" button.
It therefore stands to reason that if the "SAT" button doesn't control the installed iPod cable on my 5, the interface for the iPod cable is not the same as the interface for the "SAT", so wherever it is, your satellite should not be interfering with wherever it is that the iPod cable will attach.
Wow, that was a convoluted sentence.
If you find, however, that you have an issue, I would highly recommend the Auxmod, available from
www.sylfex.com. This small board plugs into the tape deck interface in the stock stereo, directly behind the "multi-system audio" panel. It's relatively inexpensive, easy to install, and highly versitile (anything with a headphone jack can be plugged into it). I just checked their website and they seem to be sold out at the moment (June 2009), but they should have more in stock in November '09 according to the site.