I agree with you, shigzeo. After having listened to both outputs via a Mini3 amp now for a week, I think the quality difference is rather neglectible. I did not conduct a blind test, but I have serious doubts, that I would be able to identify which is which with my Ety's under blind conditions, especially when walking around or sitting in busses or trains.
I am soldering my own cables, because I like them to fit exactly to the way I am carrying my ipod and amp in different pockets of my jacket or my bag. I am probably going to make a mini to mini cable, because I do not really trust the dock in terms of long term reliability and stability when carrying all the stuff around every day.
So is my initial question if the LOD makes sense for the iPhone/Touch answered? Not completely. At least it is answered for me personally, because I was motivated to do some simple measurements and listen carefully for some time. My answer is: I do not care for the maybe existing difference in quality because under the circumstances I am using my ipod it does not matter for me.
I can only join in the mantra of all experienced hifi fans: Listen carefully and decide for yourself before you change something on an audio system that might already be perfectly tailored to your application. And in the mantra of all objectivists: make blind comparisons wherever possible, if you do not want to fool yourself
! And if you like a component purely for aesthetical reasons (e.g. beautiful expensive cables), then admit the real reason to yourself and do not pretend to hear non existing differences in sound.