I have plans to bring out the I2S interface on the iPod and interface it directly with my own DAC design. It will be like a portable docking station that you can hold in your hand like the iPod, but a bit larger. Rechargeable battery powered with DAC and headphone amp/volume control. I am calling it the iRod, for "hotrodded" iPod. This will happen probably next year after I complete the more important product of my Formula One DAC. The iRod uses many of the features of the Formula One DAC. It will be a milled, anodized aluminum chassis with rounded edges, available in colors, that the iPod slips into. You can even drive an amplifier directly from it.
The iRod will require modding of the iPod to connect the I2S interface to the docking connector, and improve the clock. The modded iPod can still be charged and used normally when not docked, except for the line-outs and some other ancillary features on the docking connector.
Steve N.
Empirical Audio