Buying an external DAC gives you more options. You can pair it with a (relatively) cheap transport. Since the CD mechanisms are the part that fails most often, you can just replace the transport as required.
You can also stream hi-res files through it.
I just upgraded from a Sony S9000ES to an Esoteric DV-50S.
For redbook CD I ran the digital out from the Sony into a Teac UD-501 DAC. It came very close to the redbook performance of the Esoteric (SACD however, was not even close).
Within your budget range, there are a lot of very high quality DACs to choose from. I would recommend looking at Lampizator DACs.
You can also stream hi-res files through it.
I just upgraded from a Sony S9000ES to an Esoteric DV-50S.
For redbook CD I ran the digital out from the Sony into a Teac UD-501 DAC. It came very close to the redbook performance of the Esoteric (SACD however, was not even close).
Within your budget range, there are a lot of very high quality DACs to choose from. I would recommend looking at Lampizator DACs.