Originally Posted by ralfp
My statement would still be true if the iPod had digital out... I guess having digital out would not be allowed by the higher ups at Apple (the execs of the music companies), as it would defeat itunes DRM.
I'm not sure I believe that's the reason the ipod doesn't have digital out. Macs have one, as do the airport routers. I think Apple's just being cheap.
If you want better sound from your ipod (less hiss, etc.), the dock connector's output is much cleaner than the headphone output.