I just got an imod myself two weeks ago but I didn't do any critical listening yet, I let it burnin for at least 100 to 200 hours before I do.
The way you talk, as well as many others, about vinyl has been some kind of mistery to me for several years. 15-20 years ago I had an extensive colletion of vinyl albums that I was listening to on an "acceptable" system but nothing spectacular. At a certain point CDs came out, I scrapped my vinyl collection and I never looked back. Then two years ago I moved into PC audio. So now I have an RWA Imod and an RWA SB2 as my front end and I am extremely happy to be rid of CDs, not even thinking about vinyl.
So, I might not be the right person to answer your question because to me there is simply no competition. If I was still using vinyl I would probably listen to music an average of 1 hour per week. With PC audio there is hardly a day I don't spend at least 1 hour listening to music.
Is the quality of sound less then if I had vinyl. Heck, probably yes to some ears but to mine not really. To my ears, having pure sound without any kind of crackle and pop feels much better then the tiny bit of "emotion" you might get out of vinyl. Sure a mediocre CD player, a DVD player or a regular ipod as your main source will have you say CD sound quality is very bad. But a very good CD player, an Imod and many other high quality digital sources don't have that much to envy to vinyl.
Now, the question should be, is the Imod the best digital source you can get on the market right now? Most probably yes in its price range, most probably not if you are willing to spend more for something like a modded Squeezebox, a modded Olive or a few others.