USB DAC or CDP for $200?

I don't want to step on any opinions about the Marantz, it is a fine machine and gorgeous for the money, I want to be clear to say that I haven't sat in front of it, so I may be speaking out of term. If I were after my primary source to be USB, I would not use this machine as in the USB input is not Asynchronous... The ESS chip used in not bad, I actually do have a cheapy headphone DAC using this USB Chip as well as the CS4398 DAC Chip, but it will not provide Asynchronous transfer... Also, The CS4398 DAC chip is on the lower end of the DAC spectrum... Not a deal breaker, The USB Conversion is more important than the DAC itself and The CS4398 Does work fine. Sorry if I'm opening a can of worms, But for USB Asynchronous transfer is a must for top performance.
Again... No, I haven't sat in front of it, that alone is worth slapping me around, but I do my homework and have listened to many components... Just my 2 cents
Good Luck, Tim

GBB,
I wanted to give you another solution, very inexpensive, several hundred of these sold to the DIY community, overall a good response... This should compete with any name brand @ $300 and its cheap. They offer a $35 upgrade on the clocks, probably worth it. Tim

http://www.ebay.com/itm/XMOS-PCM5102-USB-to-fiber-coax-DAC-headphone384kHz-32bit-completed-in-case-/231130735111?pt=US_Amplifier_Parts_Components&hash=item35d0772207

Just want to add that I love my Emotiva xda2 also. I paid full price when it came out and have no regrets.

Sorry I am late to this thread. To answer your question, go with a DAC. Many goog recs posted. If later you choose to play CDs via disk, you can buy an inexpensive player with SPDIF out and run through your DAC.