In terms of functionality, yes, more or less.  The comparability of the
sound quality would depend in large part on the receiver, including its
DAC. 

And of course, the  iTouch's max capacity of 64GB translates into maybe
200 - 250 albums in ALAC, so even people like me with a modest music
library would have to be very selective about what subset of the library
to load onto the iTouch.


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