In a word, yes. But it's not really the iPod, it's actually the mp3 format we've all become so fond of. It is indeed designed to fool you, and fool you it does. How so? Well, our ears and brains have a limited range of sound they can pick up and process. A high quality audio recording has a great deal of sound to it that is beyond our range of hearing. When you compress a CD track into an mp3, the mp3 encoder (that little part of iTunes that secretly works in the background when you add a song to your library) throws out a lot of sound data that you don't "hear" in any real sense.