It is really hard to decide between a source/dac and a standalone CD player. You need to decide which would you like because both can be had according to the quality you expect. If you want a no fuss set-up, go with a good cd player. But if you love tinkering and mixing/matching components, go with the source/dac set-up.
With your 707, you can connect sources such as PC/Mac, media players, and also CD player with digital output.
With a stand alone CD player, it plug and play.