Upgrade from Sony XA9000ES

Yep, the 860 is a little better than the Sony actually IMO. The Sony was about multichannel SACD and even though it does have decent CD playback, it is certainly not the last word. The Wadia is more focused with a deeper soundstage, dynamics are better and it's smoother on CD's that allow for that to show through.
With all that said, I still don't think you are hearing the limitations of the Sony as you described. I think it's generated elsewhere in the system. The Sony is certainly good enough to pass a CD along up to its limitations. I have compared the following machines in my soundroom under the same conditions: Sony XA7es, XA777es, XA9000es, Arcam FMJ23, Ayre C5xe, Ayre CX7e, a couple of Rega's, Wadia 860 (I currently use an 861se,) Cambridge Audio 840c, a ARC CD3 and 3 Meridians, the G08, 508-20 and 508-24. Out of these, I still own the Cambridge Audio, the Sony XA7es and the Wadia 861se. I love the Sony simply because it has one of the best built transports ever used and sounds so analoque like. The Cambridge sees little use in a second system and the Wadia is my main player.
I can tell you this, all of these players are excellent with just slight flavoring differences. Nothing like what you are describing and desiring. This is why I say you are either hitting the CD wall and it's not good enough for you or something else in the system is at fault. I don't make comments lightly. I went through this CD stuff over the last 10 years and honestly, it's not good enough. The Wadia 861se is the best player I've heard except for some of the DCS stuff.
Also, certainly don't be afraid of older technology. It's built better and the technology is still relevent today.

Oh, I did hear an ARC CD7 not in my system. It sounded excellent but until I actually hear it in my system, I don't like to make a comment. Other trusted ears have said it is superb and I believe them that it is. The thing here is, you've got to spend to really better the Sony to make it worthwhile.

Bigtee, I presently have the XA900ES for CD and SACD and a Lexicon RT 20 in the system for CD and DVD-A and movies.
I use balanced power for all, separate for the front end and the amp, as well as good isolation & conditioning for each digital piece. Friends all hear the differences between the RT20 and the Sony the same, and all can hear what I'm hearing. (My listening evaluators are women and young men as their hearing is supposedly at its best.) Because the 20 & 9000 are different I don't think what we are hearing is elsewhere in the system.
You mentioned the Sony is not the last word for CD.
You have exeptional exposure to different units.
Could you advise how the XA9000ES compared to the c5xe and the 861 for CD play?
Have you ever heard the RT20? We find it 'surprisingly' good for CD. Very dynamic.

Bigtee, I presently have the XA900ES for CD and SACD and a Lexicon RT 20 in the system for CD and DVD-A and movies.
I use balanced power for all, separate for the front end and the amp, as well as good isolation & conditioning for each digital piece. Friends all hear the differences between the RT20 and the Sony the same, and all can hear what I'm hearing. (My listening evaluators are women and young men as their hearing is supposedly at its best.) Because the 20 & 9000 are different I don't think what we are hearing is elsewhere in the system.
You mentioned the Sony is not the last word for CD.
You have exeptional exposure to different units.
Could you advise how the XA9000ES compared to the c5xe and the 861 for CD play?
Have you ever heard the RT20? We find it 'surprisingly' good for CD, for a DVD player. Very dynamic.