iPod to DAC Connection


I was disappointed that the fourth generation iPod announced this week did not have a digital output so that it could be hooked up to an DAC. I think it could provide near audiophile caliber output if you used the best AIFF or Apple Loseless processing options and a digital output. Now, I'm wondering if it is possible to have a digital output for it by somehow hooking up a cable to the iPod itself or the dock that would be Firewire or USB 2.0 at the iPod/dock end and S/PDIF at the other end to plug into a DAC. Anyone know if this is possible? Does such a cable exist, or maybe the digital bits coming out of a Firewire output are different from those going through a coaxial data cable? Any insights would be appreciated.
bruce_1
Apple's 5th generation ipod was introduced this past week and their lack of interest in the audiophile market was once again evident. Like past generation ipods, their newest model lacks a digital output for connecting to a DAC. So, we still wait for a model that we can download music on to take to audition high-end DAC's at dealers.
There are any number of laptop computers with built in digital I/O that will give you portability with D/A connectivity. Even without built in I/O, there are a growing number of USB and Firewire equipped D/As.
apple does have a bit perfect digital output option:

http://www.apple.com/airportexpress/
I have the AirportExpress, use for hours every day to play playlists (everything from classical/opera to 60's soul music) and love it, but it doesn't help when you want to get maximum fidelity in a portable pkg (i don't have a laptop). I don't think it is asking for too much to want a digital output on the iPod. They cound put it on the dock. The Airport Express has a digital output, so it isn't like they don't recognize the value of providing it!
I use a modified Transit with coax cable attached. It passes everything, including iTunes, bit-perfect .wav files and even MP3. I drive a modified P-3A upsampling DAC with it. The quality of output is as follows:

MP3 - acceptable, but depth and dynamics are compromised
.wav @ 44.1 - as good as the best transport
iTunes - more dynamic than .wav files, but vocals are a bit hollow
.wav @96 - best of all. a bit more dynamic than iTunes and more natural on vocals. Leavs all transports in the dust.