Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
The purpose of an iPod is to be an AAC decoder.

If you're going to have it stream to another AAC decoder in your headphones, you might as well tape your iPod to your head!
 
Did you forget that the iPod also contains a hard drive, screen, navigation buttons,

Why the hell does it matter if there's compression (NOT AAC) in the headphones if it is required. Either way its going to have to receive the digital data and convert it to analog, so why not compress and decompress it.

Give technology a f'ing chance.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.