True but if you have the files in Apple Lossless compression or uncompressed WAV files or use Exact Copy, its OK (not great but not crap). Cardas has a cable exactly for this (using the headphone connection in the iPOD) as does I think Audioquest. I use the Cardas and the sound quality when done this way is OK, sorta like a cheap CD player. I know its not saying much, but you gain the flexibility of the IPOD and playlists etc....I use it for background music at parties etc...obviously not for serious listening.