alright heres the deal, some of pioneers radios use digital and some of them use analog, the way that you can tell is by the type of connection cable it uses.
a lot of their cheap decks will just use a USB plug, this is digital, the radio has a cheap chip that decodes the MP3 inside of the radio then sends it to the amplifier.
the chips that they use on these are not the best quality and thats why this method is usually used on the basic decks.
with most of the nav systems, they use analog, the USB is just used for Ipod control and then there is a seperate cable that carries the audio and video from the Ipod (where the MP3 is decoded from a slightly better chip)to the head unit via an analog signal, which is supposed to give you better sound because the chip in the ipod is better that the one they would have used in the headunit.
now there are a few models out there like some of the alpine media receivers, that have a top notch D/A chip (24 bit burbrown D/A) that will use just a regular USB cable and do a much better job decoding the MP3 and giving you better sound.