I have two 4GB D2s and also frequent iaudiophile.net .
I don't find it "cold", though its detailed sound can trend towards analytical if you match it to phones which go strongly in that direction. Its onboard EQ + post-processing effects allow you to tailor for the target sound pretty easily. There's actually a sticky thread at iaudiophile in the D2 subforum in which people share their D2 settings+phones+music, to give others an idea of what it can do for their needs.
I use what's in my sig as listening devices with the D2 - all give a balanced and lively sound with the midrange I enjoy - that's just where I tune it towards. I don't miss out on detail, interestingly.
I recently bought a second one because of the known SQ (and, I did attempt more comparisons with updated and new brands/models), I enjoy the form factor (tossable without worrying, especially in a light silicone skin), the battery life is ridiculous, my daughter loves watching movies on it in the car (or, listening to her music), I have SD cards for specific needs (i.e., loaded with media per family member preferences) and the touch interface flies for me . . . among other things.
That said, I've heard good things about the Sony A818's SQ, and it's no longer is bound to their software (i.e., a good thing).
- wader