Not sure really. On one hand digital music is much more mainstream and therefore would have a greater appeal. The reverse is that competition is much more fierce. The average consumer would probably go for one of the cheap MP3 CD units. For the widest appeal you'd also have to support AAC and WMA. This would entail the DRM baggage as well.

I personally think that a sort of slide in dock for the Karma would be pretty neat. The front display would fold down and you insert the Karma and then the display goes back up. Something that looked like the empeg but took a Karma as storage pretty much