Sound quality is subjective. Try the Sony range, iPods, actually try the D2. Just try as many as you can and make up your mind that way! Lots of people on here don't rate the iPod touch, but I love it!
(I'm not a fan of Cowon, I had the X5 and it did sound a little unnatural and processed to me)
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DAP: iRiver H320 > iAudio X5 > iRiver H120 (Modded 30gb) > Kenwood HD30GB9 > 32Gb 1st Gen iPod Touch 2.1 > 32gb iPhone 3GS OS 3.0
CANS: Yuin PK3, Senn PX100, Grado SR60, Yuin PK1 (Sold), Senn IE7
AMP: PA2V2, FiiO E3, Fiio E5
INTERCONNECTS: Joneser LOD, 4cm 22AWG Cryo Jena Mini-Mini
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