This may be a dead thread, but i'll add my two cents, for what its worth.
Part of the reason I signed up for this website was to see if it was just me that was disappointed with the touch's sound quality. To be honest, I've been disappointed with every ipod i've purchased, and usually have returned them, but the touch just has so many plusses otherwise that makes it hard to resist. Going to a touch from the Cowon X5 has been a very painful process...and I find myself still listening to my almost dead X5 whenever I can...Being a fan of modifying how songs sound to suit my liking (i.e. EQ), its supremely frustrating that you can't touch the EQ on the touch without distortion rearing its ugly head. I've just bought a Line Out cord and am trying to get a Ray Samuels portable amp to see if it will remedy the problem...its just sad that to be completely happy with the touch I have to spend another ~400 bucks.....but unfortunately, the iTunes ecosystem has a grip on me (like it does many others).
Wow I really needed to rant didn't I??? If anyone is still listening, lets band together and get Cowon to release a 64 gb + player eh?
Cheers