I agree. I've been using a Karma for a couple of days now too, and while I abolutely love this little thing and haven't had ANY problems with it, these are the things that I miss the most while using it :

1) Hierarchical playlists. Absolutely, hands down ! I really hope that the Empeg guys will keep their promise and implement this in a pending firmware update.
2) A remote of some sort, preferably with a little LCD screen built-in. It would definitely ease using the Karma while it's in my pockets.
3) The Empeg's search features. I guess this can't be done on the Karma, but that doesn't mean that I don't miss them. IMO, the Empeg's search engine is one of it's most powerful features.

And is it possible to insert/append a track while playing another playlist (like it is with the Empeg ?) It's probably possible, but I haven't found out how to do it yet.

Oh, and we NEED a decent carrying bag or case for it. That supplied pouch is....erm...well... crap essentially. Certainly unworthy for such a great product!