The sound that comes out of the speakers really isn't good. They sound thin, canned, and just about what you'd expect a couple of amplified headphone earpieces to sound like. (There's an inline volume control on the headphone cord to raise and lower output levels). But if you and a couple of other people were watching a video on your iPod and wanted everybody to be able to hear the sound, this iHome headphone/speaker system would certainly do the job. For music, it's a little dicey, but if you're OK with hearing tunes through a $12 transistor radio, you'll be able to live with the sound.
As headphones, the iHMP5s perform better, but the sound isn't good enough to redeem the product. There's not much in the way of detail (clarity) and the bass is pretty messy (read: thick, mushy). They're not terrible, but they do sound like budget headphones and the earcups don't feel all that comfortable on your ears.
In the final analysis, it's hard to recommend these guys unless you find them significantly discounted from their list price of $60. Again, they have some merit, but we'd be more forgiving if they'd excelled as headphones.