Actually there are a number of cables that will allow someone to use to direct out of the iPod and avoid the headphone output all together. 
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Originally Posted by X5FX
This is just speculation, but based on the photos I have seen the Ipod still uses the headphone out. So, yes I would assume quality would be the same. I have the premium sound package, and I am not all that impressed with the quality. Its ok, but not great.
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