I am amazed no one beat me to this:
Rockbox clip+. Player and uSD card should put you well under 200 with solid sound.
Honestly, I haven't used this setup, I had a clip+ sans rockbox... Never think you can go kayaking with an mp3 player.... and now am using a regular clip, rockboxed. But from that perspective, I'd definitely recommend it...
*edit* sorry, lazily skimmed your post before writing mine. The clip is kind of the opposite of "no need to EQ." It begs to be tinkered with until you have it dialed in to your liking. Once you hit that though, it is pretty hands off, if you want it to be, and the UI, while not beautiful, is extremely functional.
Edited by Coatze - 4/2/11 at 6:34pm