Thanks, I eventually found out about this model. Though I'm still debating whether to get this or a good DAC.
It's time to try both.
If you want to stick with CDs, then a dedicated player makes sense. Dedicated CDPs generally work better for CD playback against an External DAC, given that they have the same DAC implementation. This is because the good ones usually interface via I2S (inherently lower jitter interface), and sync to a high quality master clock in the servo decoder board (or sometimes in the dac board, or a separate stand-alone board altogether). This simple chain is just much closer to optimal for CD playback.
On the other hand, you can often get a higher quality external DAC for the same money (if you already have an existing CD transport, for example). This is because you're not paying for the disc transport and its controls, the remote control (most DACs don't have one), the bigger power supply and the penalties of a larger chassis (larger manufacturing, storage, shipping, etc. costs). Though the monetary difference may seem very small per unit, but the overall cost of warranting a device with moving parts also tends to be a lot higher (aside from the higher failure rate, the need to stock parts and to have a competent service network for this are hidden costs). Save for a few proprietary implementations, most good external DACs would have circuitry to compensate for the poorer data stream that it has access to (SPDIF or AES/EBU). This is often done by clocking itself independently, and working asynchronously to the source.
Whether the superior DAC's quality would compensate for the inherent disadvantage of hooking up through an inferior interface, would be a case per case basis. I suggest you compare your options in terms of actual sound quality, and factor in the flexibility of an external DAC to the equation (you can hook up other devices to it).
