@jrcotner - My two cents - One advantage to having a separate DAC and CD transport is the flexibility and potentially lower cost of a future change should you find replacing one or the other improves SQ further, or presents a different sound more to your liking.. That said, you will find differing views within threads on the importance of the transport. I am in the camp that you don't want to short change with the transport , it definitely impacts the overall SQ realized. I state this via 1st hand experience having moved on from a Cambridge CXC transport (pretty decent) to a SimAudio 260DT transport ; both used in conjunction with a Modwright Elysee DAC. With the budget that you want to stay in I'd recommend going for a traditional CD player versus separates; depending upon your viewpoint on cables you might also have to allocate some of that budget to an upgraded power cord and digital cable. Staying with the CD player you would hopefully maximize your budget from an SQ standpoint.
Best of luck with whatever decision you make. And, no need to be swayed from staying with CDs by the streamer crowd. Enjoy spinning! I do in 2 systems