There is a difference between 128 AAC that the iPod supports and MP3.

AAC sounds better, in general, on home systems, IMHO.

I do agree that a less expensive speaker that is aesthetically appealing, as you require, that does not accentuate the obvious negatives of compression, are the better way to go, especially seeing as how the client only spends a couple of days a week doing any listening.

There is usually more of a fatigue factor when listening to compressed audio such as MP3 on a more revealing speaker when compared to the same MP3 audio on a "lesser" speaker.

IMHO!