Is the iPod Hi-Fi Just Hype?

First, let me say I like the look of this device and I like the concept. Almost every iPod user wants or has some method of listening to their iPod in their home. In fact, a number of devices have been around for a while that make the dock-connecting iPods into small stereos (and virtually all are cheaper than the iPod Hi-Fi). Also, the iPod docks from Apple and other manufacturers have enabled audio out to home stereo systems for quite some time. And multiple models include a remote.

What bothers me about the iPod Hi-Fi is its cost and limitations. It is priced more than most portable stereo systems (including those built for the iPod). It is actually right in the price range of most entry-level home theatre/stereo systems. And most of those systems not include multiple surround sound speakers, but they also include receivers that can accept multiple audio sources. Yes, the Hi-Fi can take in one alternate source, but that's still limited. Also, because it is a single unit, you cannot get surround sound effect from it. For serious home audio buffs, these are some important concerns.