Mapman - external DACs can play pretty much anything in up to 24bit/192kHz delivered by SPDIF or USB (Benchmark). CDs might be replaced in future by downloads to hard drive bypassing unforunate redbook CD format with limitation of 44kHz carrier. Many DVD players can also play Audio DVD and SACD (converted to SPDIF) and even HDCD. External DAC opens many possibilities and makes you independant from transport/source. Quality of dedicated external DAC is higher - just show me CD player with measured -140dB signal to noise ratio (Benchmark).
Most of CD players use mute clamping circuit on the output (to mute gaps) that is affecting sound quality. External DACs do in digital processing.
Most of CD players use mute clamping circuit on the output (to mute gaps) that is affecting sound quality. External DACs do in digital processing.