I'm running 2.1 and the Pandora audio quality simply doesn't have any good clarity or punch. It sounds fine in my car because my car's speakers are bad.
I am a little spoiled with audio quality, but not that much. At work I use some Sony MDR 7506 cans. Using Pandora on my iTouch provides excellent clarity, bass, response, etc. Totally noticeable difference. This is the last reason I haven't given up my iPod yet.
Has anyone else seen the huge contrast in audio quality?
(I've tested on good wifi networks, and with the quality setting on 'high' which shouldn't matter, since it's not a cellular network)