One immediate question is sound quality. It seems that a $29 optical drive isn't going to read CD's as accurately as what I have now.
Not true. A CDROM drive in a Mac Mini reads perfectly every time. Using XLD, it is checked on the network against many other rips. XLD makes sure that the data is correct and the OFFSET is correct. This is an area where I believe some custom rippers in these all-in-one devices fail. Offset can and usually does affect sound quality.
I would hate to go through all the work of ripping all these CD's and then have digital data with less integrity than what I have now. At least owners of megabuck transports might question this.
Nothing to worry about if you use a recent CDROM drive and XLD or dbpoweramp.
An extension of this question might be this--Do some feel that their sound is BETTER after they went through this transition. (I suppose it's possible if less jitter, better DAC, etc. But if just feeding a digital signal say to the Lyngdorf, it seems the best you would do is equal, but not better).
There is no doubt in my mind that my hardware playing .wav files beats ANY transport on the market.
The Lyngdorf may be an issue here. If it has a reclocker on its digital inputs, then you are stuck with the sound of that. Reducing jitter of the source will improve SQ, but maybe not a lot compared to a DAC with no reclocker on the input.
Steve N.
Empirical Audio