You sure can up to a certain point. Dirac are correcting for both the DAC and the headphone out of the iPhone as will as the flaws in the earphone, cleaning up the audio even before it hits the DAC.
This is the future of audio. Advanced software that correct the entire line of audio and are customized for certain product combinations.
With such a mediocre product as an Earpod you can only get you so far in terms of detail, soundstage and imaging with these particular corrections.
Still here is the result in black and white for an experienced audio guy:
I am extremely familiar with DSPs and how they work (Stereo Tool in particular is what got me into Head-Fi in the first place) and there is simply no way that any DSP is going to make that great of a difference in terms of audio quality. You can make great changes in terms of tone and frequency response and whatnot, but you simply cannot change factors inherent to the hardware, which are by far the main limiting factor in any setup.
It's going to take much more than an appeal to anonymous authority to convince me otherwise.
Edited by Tus-Chan - 1/12/13 at 12:48pm