Will computer to DAC replace transports and cdp's?

The CD itself will be a relic soon, as well. As available bandwith increases, delivery of the original music will all be computer to computer and there won't be any need for the little plastic disc. That trend is already well underway for computer software delivery.

Matrix

To your comment:
"an Apple type computer is suppose to be excellent, but Ipod itself is not near the quality of CD from my understanding."

An iPod is just a very small hard drive installed in a very small case with some software to navigate to the songs you want. It's entirely up to the user whether the music on the iPod is stored in a format that is identical to the original CD or compressed.

The limitation of the iPod as a source is that it's designed primarily for convenience and portability, meaning there is no digital output and the number of uncompressed songs you can store is limited by the available capacity of 1 inch hard drives.

If you go to a slightly larger device size, to something like an Archos Jukebox, you get a 2.5 inch hard drive with theoretically higher capacity and USB connection.

As with all other things audio you just pick your system based on format, form factor, price, quality and convenience, there's no right or wrong choice.