For me, the LOD gives my RE0 through the Headstage Arrow 12HE amp more clarity, widens the soundstage and gives, by a lack of suitable vocabulary, "more presence" to the music. These improvements are ofcourse marginal but are worth the $30 i payed for the LOD. I can succesfully blind test the LOD when compared to headphone out and always end up liking the LOD's sound more.
The LOD to my hifi rig and car radio show a more obvious improvement that is easily recognised, even by non-audio enthousiasts. For a no-brainer, Fiio is making Sony LOD's as well now which are practically free compared to the ALO one.