I've been listening to the X1061 for a few days now. Compared with my iPod 5.5g, the Sony is tonally richer. The most noticable difference is in the bass, where the Sony is more dynamic and textured. The iPod is detailed enough but sounds thin, even boring compared to the Sony. I have been comparing with Koss KSC-35, AT ESW9, and Grado HF2. As far as features, my favorite addition over the iPod is the FM radio which works very well here in Philly. The You Tube feature works well around wi-fi. This is no pocket computer like the touch but I'm not around wi-fi enough to make the touch worthwhile anyway. As an audio player the Sony is great.