Just set up a simple receiver & speakers w/ iPod dock accessory. You could save even more $ by going with a HTIB system. The sound quality will be vastly superior, even with an arguably 'budget' receiver/speakers. You gain the additional advantage of being able to move around/adjust the location of the speakers too. Surround sound would also be an option if you wanted to do other media on the same system.

Examples:

Energy Take Classic vs Monoprice clone
http://reviews.cnet.com/8301-33199_7-57578322-221/are-the-energy-take-classic-and-monoprice-9774-the-same/

HTIB examples-
https://www.shoponkyo.com/products_refurb.cfm?specials=1&group_id=1

Ecost receivers
http://www.ecost.com/s?rch&q=av%20receiver&includeImage=true


Most reputable entry level AV receiver manufacturer's rigs would suffice. Check out ecost.com & amazon for such deals, along with fatwallet.com/slickdeals.net. The Energy Take Classic 5.1 speakers now have a very good generic equivalent for less $ (see above monoprice.com & CNET for reviews of this one).