BTW, can the Monster cable connected directly to my iPod's heaphone jack allow me to use a digital connection?
No. You can't get digital out of an iPod (at least, not without hacking it).
Which should tell you the limitations of those other products you linked to. They re-digitize the analog output of the iPod, send that digital signal to a Bluetooth receiver, which reconverts it to analog (or feeds an external DAC). I seriously doubt what it's transmitting are WAV files. So even if you put uncompressed music on your iPod, you're not feeding uncompressed music to your stereo. On the other hand, it might be good enough to transmit any MP3s/AACs you have on your iPod.
In short, neither of these will give you the quality that AirTunes and your Arcam are giving you right now.