Tom's Music Thing - $50 gadget claims to clean the sound waves of MP3

Clari-Fi is a little passive $50 gadget which goes between your iPod and your headphones, and makes some huge claims about digital music: "This technology allows for real-time compression of digital audio, removing harmful digital artifacts and 'spikey-ness,'... Clari-fi's semiconductor was developed with custom silicon with the sole purpose of quasi-logarithmically compressing audio sources having earphone load impedances of 25 to 50Ω. The compression algorithm continuously limits digital artifact peaks."

There's a whole page of what looks to me like long words for the purpose of confusing customers, but I'm not an expert. Can someone who understands sound technology better than me explain what this thing is, what it's doing, and why we don't have them built into everything already?

Here's a positive review that doesn't tell me anything, with some extremely snakey comments: "It allows ‘good’ high frequencies to be heard and only compresses highs that are peaking...this thing flat out eliminates hearing fatigue." (via Palm Sounds)

Clari-Fi Website

"Tom's Music Thing is brought to you by Music Thing, the London-based website about music gadgets."