You do need the dock to use the line-level output to your stereo. While it's true the variable output headphone connection works fine, the line-level output provides higher fidelity and eliminates the risk of overloading the inputs on your pre-amp or receiver.

If you don't have an iPod yet and you love music, especially if you travel on airplanes, you need one. Just know that podding, like most other things, is a bit of a money pit.

Probably not worth it, but handy (Rating: 4.00)
Review : The iPod dock may not be worth the price - but it *is* handy if you are into convenience. My iPod came with a bundled dock and I keep in on my desk for charging/syncing.

The dock is well designed - seems solidly built and is nice and small. It's also nice how it doesn't have any cables hanging out of it like most docks seem to - you just plug in the regular iPod cable to the back and that's it.

I've seen people who have two iPods leave one dock in the living room by the stereo equipment. The audio out jack on the back of the dock allows you to hook it up to your stereo and you can use the dock cable to plug in to the AC charger. This lets you quickly snap the iPod into its dock to charge and listen to music - however, if you only have one iPod, you'll want to buy an additional cable along with the extra dock so you don't always have to unplug it to sync with your computer.

If you're not feeling cheap, I guess it's handy.

Nice work if you can get it (Rating: 4.00)
Review : Let's put it this way: I think the dock is great. Aesthetically is much more pleasing to see my iPod propped up securely in this sturdy little accessory. Functionally, the line out jack is great for hooking up to a stereo. And for the sake caution, I prefer having a spot to place this pricey little unit in, rather than just leaving it lying down, just waiting for the first inadvertant soda can to be set on it, or crushed under a stack of books, and so on.

The price doesn't really bother me; it could be lower, but it's not prohibitive, considering how much you just paid for your iPod. And that's why overall, I'd give the dock 4 stars...

... But not 5. Because having said all of that, it's really sort of chintzy of Apple to make one have to pay extra for a basic component and, when all is said and done, one you don't necessarily actually need. So, in the end, it's nice, if you can get it -- but if not, you're not missing much.