If the Touch has a mini-server built in (did I get that right?)... so
instant plug and play with non-local music sources, doesn't that change
the equation?

Either way, Logitech -really- needs to put together a "runs out of the
box" solution.
Fastest way to do it would be to buy the company that's now building an
integrated server solution, put it on some small-footprint platform,
wrapped in logitech plastic and logitech logos. Put a wireless
capability in it - so "out of the box" doesn't even require setting up a
wireless router - just attach an antenna. Make sure the "base unit" (or
whatever it's called) is labeled "optional" to not lose the current
customer base.
I'm pretty sure they could sell something like this well under the
Sonos. It would have the "only one base unit per household" advantage.

There are folks out there who really -prefer- a "closed" system. Look
at iPhones and, to a lesser extent, Macs. Yes, it costs more. Yes, it's
limiting. But the hardware/software combination, exactly as you are
buying it, "just works". Big attraction there.
Many years ago, when I worked for Lotus, I spent some "product liaison"
time in Cupertiono. I saw "JFW" up on a lot of office walls. When I
finally asked, I was told it stood got "Just Fu***ing Works". I could
see (then and now) how customers might value that over "openness" or
extensibility, or even over not having to throw away hardware when the
software advances - and even at a price premium. 

I also wonder how much 'cognitive dissonance'
(http://en.wikipedia.org/wiki/Cognitive_dissonance) is involved - for
those folks who have invested heavily (time and/or money) in either
system. I certainly see some of it in Mac aficionados (more so years ago
when the Mac price premium was basically -huge-).


-- 
bobkoure
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