A player without a display is the same as the Slim Devices Duet.
I have one, and can use it because I am computer and network literate, but from buyer comments and forum entries, it is obvious that the majority of people just don't get a device that has no obvious moving parts and needs setting up over a network.
To those who are confusing an iPod Touch with a remote control, the application on the iPod is not generating RF or Bluetooth, or any other signal. It is running an application which "sees" the player across the Ethernet network, and sends commands to an IP address where an application receives them. iPeng is a good example of this, as is MPod (
http://www.katoemba.net/makesnosenseatall/mpod/) which James mentioned.
I still don't get the step up that a BDP-1 would give me. I don't want my music storage co-located with my audio equipment. I do want a display so I know what state the device is in, and I need a rich user interface to control the system as my collection is over 12K tracks. Which sounds like a lot, but is only 900 albums.
I am all for deconstructing things to optimized pieces, but the current Logitech Transporter, SqueezeCenter software, iPeng/iPod Touch combo has, and continues, to serve me as an ideal player. I have the Transporter connected to the BP26 as an analog source, and to the BDA-1 as a digital source. Only had one night to try things out, so can't comment on the difference yet.
I wouldn't want anything less than that, and losing the integration between the list management and server functions is just a step backward.