Hi Charles,
I would say that my impressions are preliminary, because I believe I have only scratched the surface on what the Lyngdorf can do and be in my system. It is so fun, and so versatile. And it sounds great, too! So far, I do not quite have the "goose bump" factor with it that I get with my LM 508ia on some recordings, but I am not so sure that I won't get there with the 3400, which is so very impressive in so many ways.
For one thing, it has much better range of volume control than the 508ia, and it sounds better both at lower and higher volumes, maintaining its character up and down the dial. I love that! The low end is much more authoritative through the 3400, and the sound overall is better balanced, whereas the LM 508 excels in the mid range, but lacks the punch and visceral impact of the 3400, which is not to say that the 508 won't rattle the china in your cabinets. It will, but the 3400 holds together better at higher volumes and never shows any signs of strain whatsoever. In short, at this point, I would say there are trade offs, and one's preference would depend largely on one's sonic priorities. I could live happily with either set-up, and would have a hard time at this moment choosing which way to go.
I will be conducting some experiments this weekend to see if I can get a better handle on all of this. First I plan to run the 508 through the 3400 and run room correction to see how that compares with the 3400 on its own. Then I will remove the 3400 and put back in the 508 and the tube-rectified Lampi Atlantic, which is just an incredible DAC (very different and more dynamic and balanced than other Lampi DACs I've heard). This has been my reference for two years, so I know this sound well, but since I have been listening to the Lyngdorf for a full week, it will be interesting to hear it again after adjusting to the Lyngdorf sound. That might well be telling.