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
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? 

I have my TV connected via Opt.to the M51 and HDMI from the cable box to the TV, that way my wife and kids can watch TV independently from the stereo.   My Blu Ray is via HDMI to the M51 and I plan on connecting a Bluetooth Receiver to coax.