A few comments on previous responses.
The issue is not just a pause between tracks (which might be annoying if you wanted a smooth DJ experience). The problem is how the playback device handles music ripped from CDs where there are logical track marks inserted into a continuous stream of music. These are provided as convenient access points on the CDs, but you don't hear a pause or any interruption. Classical music is the most likely to have these silent access points, but any sort of extended music selection might have them.
When you hear breaks in music that is supposed to be continuous, it does degrade the listening experience. It sounds like an inexplicable dropout.
The issue is not about ripping CD. It's about listening to music ripped from your CD collection.
It's a good question, whether the flaw is in hardware or software. In the early iPods, I was told that it was a hardware problem. But at this stage of technology, I would think it's a software issue.
Pandora is not a relevant comparison because it uses a radio format, with short selections.
I'm glad that I'm not the only one who finds this flaw to be annoying.