It's rumored on the Chinese HiSound forum that the N3 will receive a major upgrade in may, but they don't know if it's about hardware or software...
I may consider to buy a N3 if the microsd noise disappears and FLAC files can be played without cutting off the first second.
I have a N1 at the moment.
You really should wait for Fiio X3. The first review is very positive. Judging by Fiio past history, I have high hope for it. I can't wait for more reviews.