I have the
Altec Lansing iMT325 that I picked up from Costco for $40 several months ago. I have several of them scattered about the house. It has very good sound quality (of course, that's quite subjective and YMMV). It's not fancy, has no clock or radio, and charges the iPod touch when it's docked. You can also plug any MP3 player into the AUX jack when you need speakers.
I have them in different rooms so I can take my iPod with me as I move about the house and not miss the programming I'm listening to. Despite the criticisms I've made about the iPod touch's shortcomings, it's an excellent audio streamer and excels in this area. Listening to internet radio, BBC broadcasts, audiobooks, and podcasts are my top uses for the iPod touch.