If it's just for playback, I'd save the cost of the dock and DAC and just get one of those sweet new Mac Minis.
Edited by bigshot - 8/4/11 at 10:52am
Be a part of the community.
It's free, join today!

Yeah, I see no real use in a digital out. I know many people are happy with their LOD's.

Really the point is to bypass the internal iPod DAC if you have a better external one. It also allows you to extract movies off the iPod and onto a TV, but I'm sure there are resolution issues and even then it is only component.
I don't think the iPod DAC is necessarily bad (can only speak for the iPod classic here) but I do still think it is entry level and there are options that don't cost a fortune that objectively measure better, and are likely to have an impact on playback IF the system is sensitive enough to notice the differences.
As to your comment on the Mac Minis... I have decided for the price I'd rather build a computer to act as a digital source, since it offers up a lot more than just an iPod feature wise :)
Also, you mentioned saving the cost of the DAC... most receivers these days have pretty nice built in DACs
I'll see if I can set up some sort of blind test running line out on the iPod v. running digital and using the internal DACs of the receiver to the external Canton towers and see if I notice anything. It'll be a few weeks :)
My gut tells me the Cantons will pick it up, but of course I'd feel that way.