Another option is the Naim nDac. That'll pull files straight of the i-device and has an app as well. Rather substantial increase in outlay though, but one that can accommodate increasingly sophisticated sources if that is your future direction.
I just use an HRT i-streamer, which is cheap and very effective. The current 256kps bitrate stuff on ITunes sound very good with it. Because I can navigate my IPod as usual, this is very convenient. I just plug in and play. You can also avail yourself of the various higher bitrate radio apps available and play those through the HRT unit as well.
