Why is the industry so lame?

I'm a 40+ audiophile who just can't understand why the industry is so tied to the past. Countless audio manufacturers will eventually go the way of the buggy makers if this continues. Consider:

In 1998 the Diamond Rio was introduced and Diamond was sued by the RIAA.
In 2001, the Ipod was introduced and it held 1000 songs.
In January 2003 Flac was introduced.
In 2003, Sonos was founded.
In November 2003 the Squeezebox was introduced.
In April 2004 Apple introduced its own lossless codec.
In 2005, Apple sold over 20MM Ipods for the first time.
In December 2007, Apple sells its 125 Millionth Ipod.

As we head into 2008, this is where the industry finds itself:

A growing number of mfrs now have proprietary Ipod docks to enhance their revenues to the tune of $100-300.

Krell now has a dock dubbed the KID that includes a preamp for about $1300. Matching power amp TBD.

The vast majority of preamplifiers have no DAC or DAC option.

Bryston and Naim have integrated DAC's into one of their integrated amplifiers (Bryston's is an option).

Only Outlaw has a 2 channel receiver with built-in DAC.

Rather than seeing the emerging new technology as something to be embraced the entire industry seems to regard it as something to ridicule. Sure, not everyone wants a DAC in their amp but how many are buying $2500 CD transports these days or even $1000 phono cartridges.

When will the industry wake up and smell the coffee?
Magnum Dynalab is now offering Dacs built into their tuners as well and will also install it in the Md208 receiver . Cheers
There was a video clip on Yahoo last night for the Saturday Night Live skit "Grumpy Old Man" that should still be there. He explains my thinking on this topic.
My point is that the mainstream hifi industry and the "Hind End" industry has ignored and ridiculed the digital music explosion to its own detriment. And that it doesn't have a clue.

Lossless has been around for the last 5 years. By now shouldn't the players have used their imaginations to see the potential and harness its capabilities instead of relying on uber-expensive one disc players and transports to protect thier existence? Since 2003 when lossless arrived saying digital music is nothing but 'Low Res' has not cut it.

How fun is it flipping through 500 or 1000 discs to find what you are in the mood for? Oh, and who could have imagined people would want tunes in more than one room of their home without buying all new gear (CD/Amp/Speakers) in EVERY room when the source material is in only ONE room?

BTW, I'm not an iTunes/iPod advocate. I use both now but am not wedded to either. I just want music easy to access and high quality. Firms like Sonos, Logitech (Squeezebox/Transporter) and the like will reap the benefits.

I wish the likes of Creek/Arcam and ARC/ML would realize they are not serving up what the people want.
You just nailed the reason I haven't purchased a ipod (and I'm the only one in my family without one). It's easier for me to find what I want to listen to by "flipping through" the cds. Easier to find because I usually don't know what I want to listen to before something strikes me. If I had to spin the wheel through 1,000 titles on the ipod my thumb would wear out or I'd settle on something just to stop looking.
Plus I really enjoy having something tangible in my hand.
I'm not putting down the new technology. Although it hasn't hit me yet, it's just a matter of time.
Wdrazek: Your point is you value convenience, others value quality. There's no doubt that those of us that put the musical experience above all else are a minority, but I think it's fair to say we woke up and smelled the coffee already.

"Remember, information is not knowledge; knowledge is not wisdom; wisdom is not truth; truth is not beauty; beauty is not love; love is not music; music is the best."

-- Frank Zappa