Meh, there still isn't any benefit to running your sound system off an iPod versus say, a computer tower connected through a HQ DAC.
Have you looked at the Wadia iTransport? Despite its low cost it performs its job well (especially for those of you who have a non 5.5 gen iPod). I don't trust the line out mods on iPods anyway, but anything beats their terrible headphone jack output.
Portable listening doesn't need audiophile quality. You can't appreciate any tiny nuanced difference between FLAC and MP3 when you're sitting on a loud, crowded bus for instance. And before you suggest noise cancelling headphones, those introduce a whole new set of acoustic issues

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