Quick answer: NO.
The first-generation (white plastic) shuffle sounded pretty good, I would say on par with the nano. However I have a 1GB clip-on aluminum shuffle and right from the start I was disappointed with the sound quality. The noise floor seems much higher, in other words there is always a faint audible hiss or rumble in the background no matter how loud or soft the music is. NOTE: This may have been fixed with more recent shuffles; mine was bought the day the clip-on model was introduced.
The loudness will be adequate I'm sure. And no, there is no adjustable equalizer on the shuffle. You can pre-set to your heart's content but it will not affect the shuffle's playback. The EQ circuitry just ain't there.