iPod for audiophiles - MSB
iPod has reached its 5th generation and still it has no digital-out. As MSB puts in their Web-site "The digital format of its audio files are converted within the iPod, which negates any attempt to create true-to-CD audio." Companies like Sonos apply different approach, i.e. they let you access your iTunes music collections wirelessly and control unit connect via true digital-out to your main rig.
As for iPod's digital out, MSB has announced iLink, a modified 80GB iPod and external iLink base station, which has full set of digi-outs: Toslink, Optical RCA and AES/EBU. What makes this system ingenious is usage of RF. According to MSB "The iLink is supplied with an RF transmitter. It looks like a small connector and plugs into the base of the iPod. It is powered by the iPod and transmits the digital audio to the base station while the iPod is played." All you have to do is match the iLink with an external DAC.
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