I have a 3G iPod and the only thing that really stopped me from using it as my main source of music (on the go, in the car, and as a piece of stereo equipment) was the 2 channel analog minijack as the only form of output. I love my Airport Express which is excellent for the stereo as it has not only a 2 channel analog minijack, but a digital optical audio out port (the 2 channel analog minijack and optical audio are the same port, you need a 3.5mm optical to TOSlink adapter to use the optical output). I didn't notice the optical output until I unplugged the minijack while music was playing and to my surprise was a nice red glow that I soon found out was an optical interface. I think the next iPod should (and maybe will) have this type of output, that way you will be able to plug your iPod into your home theater and such and have amazing sound quality. With a digital output, the iPod will have a lot more possibilities with high-end audio equipment.