The line, "Turn up the Eagles; the neighbors are listening" has become the mythologized in rock. Steely Dan admired the Eagles, and the group's had the same manager: Irving Azoff. The duo has been coy about the line, but legend has it that Walter Becker's girlfriend loved the Eagles and played them all the time, which bothered him a bit. One day they got in a fight, and he came up with that line.
A story with more veracity is how the Eagles returned the favor on "Hotel California
" with the line, "They stab it with their steely knives but they just can't kill the beast." With the clear intention of getting a Steely Dan mention in the song, the line was written as "They stab it with their Steely Dan," but they decided to make it a little more vague. As Glenn Frey has pointed out, changing it to "steely knives" retains the phallic imagery.