Update now that 1.1 is released-improved soundOk, so if you have read this thread , you know I bought a Pre and i like it very much as a phone, email, internet device, but not so much for media,especially music playback.
I was going to return it because of the hiss with most of my phones and tubby bass but both Palm and Sprint kept saying hold off for the 1.1. release before you decide
So the answer is mixed. They substantially reduced the hiss but in the process, lost a little definition in the high frequencies. It's not noticeable in a lot of music, but in well recorded music with lots of brass (miles davis sketches of spain), the normally unbelievable clear tone of Miles trumpet has a bit of fuzz to it.
That being said it's really now noticeable only under critical listening and overall the pairing with my shure e4s is now satisfactory to the point where I'm feeling good about keeping it..
I really would suggest members of this forum try before they buy with their preferred gear before fully committing to this. The Pre seems to be VERY picky about what phones it pairs well with. My Etys (my overall preferred earbuds) sound terrible with the Pre.
I guess it must be quite difficult to make a very high quality mp3/phone combo.
PS. I do give Kudos to both Sprint and Palm for good customer service (including willingness to extending beyond what is normally a 30 day refund policy) and listening and intelligently responding to my questions and concerns. They actually seemed to take my concerns about sq seriously and not treat me like just another ignorant consumer.