Umm. That is a pretty strong statement! How did you determine that there is 'audible distortion' from the QP1R's line out? I believe you heard it, but with what components? How did you test this?
Well, when I had my continental v2 amplifier around and paired it with the qp1r through line out, the vocals sounded weird and somewhat blurry and muffled, which I had never experienced before. A quick change to headphone out but using high gain and considerable volume with the same volume of music from the iem solved this problem.
I also have a portable dock/speaker thing. Tried line out from the qp1r on it too. Now the distortion was even more apparent. The vocals were very unclear and I could barely decipher what the person was rapping. Changing to headphone out but with high gain and high volume and the problem was solved.
The ak100 gold I had also had a distortion problem on line out mode. When using line out mode to my continental v2, the music would often distort. I had thought that it was a problem with my gear. However, based on some advice ( forgot whether it was from a friend or the net ) I used high gain and high volume and this problem was gone. Was told that the fact was being over driven or something and that on line out mode the distortion levels increase by a lot.
Therefore through the similarities in my experiences I have deduced that there is audible distortion through the line out while none with the headphone out.