So I bought a cheap ipod video dock, It displays the video content on the tv fine, but I have to manually control everything from the ipod. The included remote only skips music tracks and play/pauses, It won't scroll through any of the ipod menus.
I did some searching online and realized this is pretty common for most docks, even the apple dock.

I also saw that there are docks available with on screen menus, but most of them suck it seems. Does anyone know of any docks that allow menus to be navigated on screen just as easily as with the ipod? I want to be able to integrate this into my audio video setup, with my harmony remote control being able to control everything once I put my ipod on the dock.

i think the dlo home deluxe does but not sure it does everything.

I am using my Ipod mini with the DLO Deluxe Home Dock. My Harmony remote controls it well.

I have two iPod 60gb photos docked to my Onkyo TX-SR703 receiver (that's the downside of 12,000 songs encoded at 320 kbps). One iPod is docked on a Griffin TuneCenter, and the other to the DLO Deluxe dock. If I had to choose one to keep over the other, it would be the Griffin. They both have their pros and cons, though. I operate both with my Harmony 880, and the Griffin is a little more responsive and displays info better. Unfortunately, there's some flaw in the 16:9 rendering of its interface, that it only fills about 98% of the screen, but it's a minor flaw. I like the Griffin better because you can access some internet radio stations via ethernet (very clunky, but nice to be able to do), and as you go through the hierarchy of the iPod menu (i.e. genre to artists to albums to songs), it displays the info much faster than the DLO. Unfortunately, I think these are the two best options available right now for controlling the iPod menus on-screen with a remote.