You can hook the IPOD up to the 375BEE, no need for 565 just for that feature. the integrated has a mini input on the front for MP3/IPODs.
I would recommend the DAC Magic highly,. I prefer it over the one in the 565
As a matter of fact, I have the 375BEE amp/CD545BEE/Squeezebox/Dac Magic in my family room. All sounds great.