Yes --to the same people that think Monster cables are better than an ordinary cable, and the same people that just don't get blind A/B tests and their results...
It's funny you mention in. Back then I participated in multiple A/B tests for LAME and other encoders and did several blind tests with all my audio playback equipment. Needless to say, the iRiver was far and away superior to the iPod in practically every metric.
I used to own a pair of Sennheiser HD-280s back then, and the difference was pretty damned clear. The AKG K-540s I own now are basically unlistenable with iPods of the time.