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Something else ignored by the article (and in the comments so far) is the issue of music quality. High quality PMPs still cater to the audiophile community and that is something that smartphones can't even touch yet.
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Nope. Different software, processors, different firmwares, different qualities of other components, variable levels of support for digital music formats and encodings, etc. All result in a different quality of music playback and fidelity. Take a look at anythingbutipod.com, for example.