NO you need some type of dac either the one in a cd player, if it has digital inputs or a dac by itself.
Not sure if I get the point of the Wadia iPod dock
Surely you must already have the stored songs in iTunes. Why not just get a DAC that will allow you to do the same thing but with ALL of your music not just what you can fit on the iPod. Is this for people who just don't want to mix computers and their systems? I don't get it.