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
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
From what I have read and what I have been told by owners who did A/Bs the $869 Gustard X20 has sonically eclipsed the Yggdrasil, Wyred for sound DAC 2DSD SE, Nad 51 and Ayre QB-9.  I do mods on the Gustard so you can take that into consideration.....However, all the A/Bs were done with both units stock.   
Did I miss something?  I thought the Parasound Zdac is only $500, yes the version 2.
Based on my research, the NAD Masters M51 DAC is now at the top of my list.   I considered the W4S DAC-2dsdSE DAC and the exaSound E22 DAC but for the money the NAD M51 DAC looks very good.  I am planning to demo a unit shortly. 

As I understand it, I could run HDMI from the TiVo cable box to the M51 DAC and run another HDMI cable from the DAC to the TV for video only.  My Sony CD player would also connect HDMI to the DAC. The DAC runs balanced cables to my Ayre AX-7e amp.  I think I might be better off keeping my existing cable connections and forget the HDMI.  The HDMI cable carrying video might be better going straight from the cable box to the Sony TV.   Any comments?

Do you have any additional comments on the NAD M51 DAC?