Need Balanced DAC with optical and coaxial inputs for 2 channel home theater system


For my 2 channel home theater system (only), I am considering replacing my Musical Fidelity M1 DAC A with a better sounding DAC.  My needed inputs are one cable box using optical and one Sony Blu-ray player using coaxial.  I need balanced outputs (XLR) to connect the DAC to my Ayre AX-7e integrated amplifier.
  

The Wyred 4 Sound DAC-2 ($1,500) and the Parasound Zdac DAC ($2,500) are on my review list.  Any comments on these units?  Or, what other DAC's should I add to my list?   Considering my two input sources, will I really get better sound if I replace the Musical Fidelity M1 A DAC?

The sound quality using the Musical Fidelity M1 DAC is much better than than using the cable box RCA outputs direct to the Ayre AX-7e amp (my system is wired using both options using the source switch on the M1 DAC).  

Since the Parasound Zdac v.2 DAC is priced at $2,500 that is my top budget but I really prefer to keep the cost under $2,000.  Your comments and suggestions are appreciated.


hgeifman
I changed my mind.  I am going to pass on the Ayre codex DAC (USB and optical inputs only) since I have decided to keep the optical cable going from my TiVo cable box to my DAC.  I do not like using an HDMI cable from the cable box using to the Pioneer TV and then an optical cable going to the DAC.  I prefer the audio signal coming direct from the cable box to the DAC using one optical cable.  The Wyred 4 Sound DAC-2 DSDse DAC looks very interesting to me.  Does anyone have any comments about this unit?

I love my M51....it's a killer DAC.   I am using it in a Sub/Sat speaker system and it great with movie soundtracks.    TV, Netflix, BluRay all sound awesome through this DAC .   What was really suprising is how well Pandora sounds through it,  much better than through my OPPO 103d.   
I wouldn't take the Codex off your list just yet, until you had chance to listen to it.  I recently finished burning in my Ayre Codex DAC and after 500 hours, the music the DAC produces is exceptional. I agree that the number and types of inputs are not ideal, the sound this device can produce is unbelievable. Well worth it for me to work inside it's input limits.  I've heard many DAC ranging from $300 to $10000 and Arye has made something special with this model.  Honestly, I get more impressed everyday.  Personally I think it sounds better than the Ayre QB-9 DSD.   Someone told me to wait until it gets to 700 hours and the DAC will sound even better....I can't wait.  I would definitely recommend that you go and hear a demo before deciding.  If possible, go and listen to a bunch of different DACs before buying one and bring a CD you know intimately; one where you can notice the differences in the sound.  Good luck!  
Hi Nycjlee, I agree the Ayre Codex is an excellent DAC and I wish I could buy it. However, the sound quality on my 2-channel home theater system is much better when going "direct" from my TiVo cable box to the M1 DAC and not running the HDMI cable to the TV and then an optical cable to the DAC (as needed for the single input on the Codex).

Another important item is that I need to easily switch the DAC in and out of the system. I cannot do this if I connect the TV direct to the DAC. Based on my research so far, the Wyred 4 Sound DAC-2 DSDse has gone to the top of my list for more research. I have spoken to them several times and they have been very helpful. I heard their equipment at the 2015 THE Show in Newport Beach and liked it.

I am disappointed the two current Ayre DAC models (QB-9 & Codex) do not support both optical and coaxial inputs. The new Ayre model scheduled to be announced shortly is probably more than what I want to spend. Thanks again. Cheers, Howard