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The ipod is performing the role of an mp3 player. It has a cpu and a memory and turns digital media into a digital signal.
The receiver is just an amplifier with a digital to analog converter- taking in the digital signal from the usb port and amplifying and outputting to the speakers.
If you are in the market for a new receiver you may also want FM and digital FM radio. And XM/Sirius, too. But I guess internet radio is pretty good now, too.
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