Nostalgia + the UI/UX + the focus of a single function device coming into vogue again + dedicated music devices tends to sound better than multi-function devices...
The DAC/Amp and its implementation likely won't match a modern quality DAP or a dedicated portable DAC/Amp, but I'm guessing they're gonna edge out most modern phones or generic devices; and they'll certainly edge out the minituarised pair of DAC/Amps in wireless buds/airpods. The technology has come on leaps and bounds but after a certain threshold nice sound is generally a matter of taste rather than how advanced the tech is and building a device around a specific purpose with the budget dedicated to it -- rather than it being an afterthought or additional feature -- usually means it fares better.
I feel like Apple should give the iPod another go.
People are coming around again to devices that do one thing and do it well. It may not be a massive seller like the og days, but they could have a limited range sold at a reasonable profit and perhaps even veer into more premium audiophile options too. A lot of things like this are coming full circle and markets are opening up again, all they have to do is address it appropriately.
There's a lot of DAPs out there now but even the pricey ones have a hodge podge, janky feel to them. Like the companies just aren't quite equipped to provide a fully unified software+hardware experience. It's either some junk proprietary OS or a version of Android wrangled together to function like an audio player where you either use a third party mobile app and/or their own often terrible app. Apple are in a unique position to provide that fully cohesive experience.
I think a simple range of new iPods based on newer technology integrating both local and modern streaming playback options as well as comprehensive format support could be pretty awesome. Perhaps hybridising a touch wheel with a touch screen to lean into the nostalgia angle. And again, just focus on, well...focus: let it just be an iPod.
I can't help but think the iPod Touch was the moment they lost their soul. It's not an iPod, it's a parred back iPhone without the phone component and an iPod badge on it, there was nothing 'iPod' about it.
I'd pay through the teeth for a premium-level iPod from Apple that integrates a R2R DAC, a solid amp section, a great, super-focused UI/UX, long battery life and full support for all file formats. I plan on getting a HiBy RS6 Android DAP with R2R DAC eventually but I'd drop that in a heartbeat for a high end iPod with similar specs and support.