If not, is it possible to add digital audio in a small music player with >current technology [and an inline amp], and keep it affordable
[assuming that the 32GB Touch is "affordable"]?

If you look at the Ipod as a transport and ignore its DAC and
amplifier it's easy.  The reason I'd like to see an optical port is
that I can do those functions better with an outboard device.

As I have said, there is nothing wrong with the Ipod.

It is what it is.  The amp can't drive audiophile headphones and
the DAC is not the best.  That makes it mid-fi to me.

It does have a lot of interesting things going on,  I'll probably buy
one based on its Wi-Fi capabilities.  But I already know that it sucks
at audio.

Duct-taping a DAC and a headamp to an Ipod is possible.  Hot
glued Velcro might work better.

:-)


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