Can an iPhone us an LOD?

I've had compatibility problems with iPod accessories that pull an audio signal from the dock connector when trying to use them with an iPhone.  I'm interested in getting a portable amp, but only if I can use an LOD.  If I'm going to use the headphone output, then I may as well just keep using headphones that can be driven directly from the phone.  LOD + iPhone, yes or no?

Thanks!

Ok, thanks for the advice guys.  But here's a new wrinkle.  I was just checking out macrumors.com, and one of the headline stories is this:

http://www.macrumors.com/2012/02/23/apple-readying-miniaturized-dock-connector-for-future-iphones/

Right now I have the iPhone 4, and I'm due for an upgrade soon but am planning on skipping the 4S and holding out for iPhone 5.  If Apple does go and abandon the 30-pin dock for something smaller, there are going to be a lot of pissed off people with expensive accessories that will be useless.  I think I'm going to hold off for now and just go with the headphone jack until I see what the iPhone 5 looks like.

Hadn't thought about the Fiio.  Interesting idea.  I scored a good deal on a pair of Grado 325i's, and have a pair of 80's also, so I snagged a battery powered RA-1 on eBay last night for $225, couldn't say no to that!  Frank at Signal Cable is already doing some work for me on a cable I needed changed, so as long as he needs to put a shipment in the mail to me I think I'll get one of these from him for now since the RA-1 has RCA inputs:

http://signalcable.com/analogmini.html

That's always a handy cable to have around regardless, and Frank makes great cables for very reasonable prices.  He doesn't do LOD's though.

But the E7 is definitely an interesting little amp, for the money it seems like everyone should own one.  Thanks for the advice folks!

So are the E7 and E11 equivalent amps, but the E7 has a dac?

Ok, cool.  Let's see how I like the RA-1 as a travel amp, then perhaps I'll grab a Fiio.  Thanks everyone!

Actually, screw it.  For $65 with free shipping from Amazon, I just ordered an E11, plus an LOD.  I'm hoping given the price difference that I'll like the RA-1 more, but the Grado isn't a true portable even though it's battery powered.  Both will have their uses...

Thanks folks!