Apparently the Phillips unit has audio in and the ability to record.

In my opinion this feature is essential for any portable audio device that wants to even slightly impact on the existing minidisc market. I don't really think it matters to the average consumer whether it can record digitally or just analogue.

I remember I bought a minidisc player/recorder before getting involved in MP3s and regularly used it to copy music, record live stuff, etc.

The Pearl has no built in ADC, and although we could theoretically add one as an external device, external devices scare off the average consumer and add a huge amount to the overall cost when compared to building it in in the first place.