It seems like having a digital out on your digital audio player would be better than an analog line out.
If you happen to have an amplifier with a digital input, yeah.

Do you think that a digital audio player such as the Karma should have one, or does that not really make a difference?
Since the Karma is a portable hand-held player and designed to be played with headphones, then no it doesn't really make a difference.
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Tony Fabris