Cambridge just came out with an ipod dock model called the iD100 which outputs digital, lists for $299. (I believe they also make 2 other docks which are analog only).
I'm currently using an Onkyo, without an additional step up transformer and it works great. I've never heard a Wadia so I can't really compare but the Onkyo works without a hitch with both my 2nd gen iTouch and current iPod classic. I've heard there are issues with certain older ipods though. There's a guy on ebay selling these with shipping for a little over $200, shipped same day and reached me in NYC in 5 days. If you want email me and I can look up the seller name for you.
I'm currently using an Onkyo, without an additional step up transformer and it works great. I've never heard a Wadia so I can't really compare but the Onkyo works without a hitch with both my 2nd gen iTouch and current iPod classic. I've heard there are issues with certain older ipods though. There's a guy on ebay selling these with shipping for a little over $200, shipped same day and reached me in NYC in 5 days. If you want email me and I can look up the seller name for you.