1. mini-to-mini cable : you are 'double amping' the headphone out on your ipod.
2. LOD - you are taking the analog signal (stronger than the signal from your headphone out) straight from the iPod, bypassing the internal amp and getting a cleaner,stronger signal
Is it worth it ? If you dont pay hundreds of dollars for your LOD, and you are willing to pay for a decent amp, absolutely. You can even use your iPod with higher end desktop kit if and when you get that far up the expenditure ladder.
This should be a sticky - it seems to be asked by every newbie from Mumbai to Memphis.
Even with an LOD using the iBasso still uses the internal DAC chip of the iTouch. The Wadia and several other docs bypass the DAC.
When I used the iBasso for my iPod, I did so knowingly but also used it's DAC for my laptop. or my iPod, I did so knowingly but also used it's DAC for my laptop.
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