You are quite right to hesitate over the setup you describe. The user interface is not only confusing, it is potentially destructive of the system! If I were in your shoes I would do whatever it took to make the loop condition impossible.
I suspect your user has a preference for convenience over sound quality, given the budget limit. She might possibly feel better with the twin speaker ouput receiver/integrated solution you envisage as a last possibility.
However there is another possible configuration, using NAD, Panache, CDP and 2 sets of speakers. In one room, set up the NAD system with the CDP connected to it. Set up the Panache and speakers in the next room. Run a long, well-shielded coax interconnect from the NAD's tape outputs to any input on the Panache. She need only turn the Panache on (and adjust volume) to hear music in the second room. All source selection would be done on the NAD.
With this solution, it is a tiny bit of a shame that whatever signal gets to the better amp (the Panache) will have been filtered through the NAD's circuitry, but at least money has been well spent on the Panache, and perhaps future upgrades will eliminate the bottleneck at the NAD.
I suspect your user has a preference for convenience over sound quality, given the budget limit. She might possibly feel better with the twin speaker ouput receiver/integrated solution you envisage as a last possibility.
However there is another possible configuration, using NAD, Panache, CDP and 2 sets of speakers. In one room, set up the NAD system with the CDP connected to it. Set up the Panache and speakers in the next room. Run a long, well-shielded coax interconnect from the NAD's tape outputs to any input on the Panache. She need only turn the Panache on (and adjust volume) to hear music in the second room. All source selection would be done on the NAD.
With this solution, it is a tiny bit of a shame that whatever signal gets to the better amp (the Panache) will have been filtered through the NAD's circuitry, but at least money has been well spent on the Panache, and perhaps future upgrades will eliminate the bottleneck at the NAD.