I don't find a huge difference between the LOD on the iPod and the analog outs on the PURE, but when you use the DIGITAL output on the PURE and send it to a DAC, with lossless files there is a clear improvement to my ears. I have a pricey LOD cable from ALO audio that sounds really quite nice when I use just my iPod as a source. It's not bad at all....much better than if I use a mini-to-RCA cable from the headphone out jack on the iPod. But yeah, the PURE is worth it's weight in gold IMO...it's nice that it has the analog outs available, but the digital out to a quality DAC is a step up.