I doubt we'll see another solution that is as hackable as the Empeg. Features, smeatchures. We can write all the features we want as a community if the device is open.enough. Look at Hijack, gpsapp, emphatic, palantir. These are all add-ons that provide brand new (valuable) functionality for the Empeg that we would not have had if the unit was closed. THAT is the most valuable thing about the Empeg (to me). I probably would not have bought one if it wasn't so open, and continued with my roll-your-own mp3 player.
I think the only thing that would be better is if a community of people with the right skills would band together to create a new, open product around existing componants. If the demand is high enough, it's possible - just look at what this community has done so far, hardware-wise. Mark's docks, Robricc's sleds, Patricks tuners, spdif out, drive upgrade instructions, new faces, lenses, buttons, led hacks, etc. I'm sure that as a community we could find some kind of single board computer to base a new product around. Everyone would have to build their own, and it would be more expensive than the Empeg, but if it was not expected to succeed commercially it would be possible.