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pffftttt if you wanted great sound use a flaming cube c30/nanite n2 guts and put a new case, screen, firmware and HUGE battery! done and dusted!! however the x3 is going to be used by most in conjunction with an amp (probably the e11) people will be looking at the total cost of the player with amp for them and im sure fiio know this.
Getting a decent sound is one thing, getting the desired functionality is another. As good as C30/N2 is, the internal controller can't do anything 24/192. In fact, that chip can't even support anything but the on-chip DAC. As far as I know, It was one of the first SoC that got rejected on the X3 project simply because it can't work with WM8740. To tell you the truth, James have told me a couple of times that the X3 project is much riskier for the company than any amp project they have. They can cut corner and just put another cheap DAP out there but they have chosen a different path by offering something with more quality and function. As he had said it before, there is no point for FiiO to duplicate other companies strategy, product line, or success. They are trying to offer something decent and unique to the consumer but at the same time still profitable to the company. If they want to play it safe, the smart thing to do is to stick to amp making and maybe start making iPod / iPhone / iPad accessories. You can't go wrong by following Apple these days. I know the concern of pricing vs desirability is very real, but at the same time James does know FiiO is taking the chance with X3 to develop something different.
P/S: Actually Cube already did what you have said on the newer C60.