To DAC or not to DAC

I have somewhat of a dilemma. I got an Amazon gift card for Christmas and had forgotten about it. I just ran across it and have to spend some money. I kind of got all up into doing the digital thing, starting off with a Sonos unit, but I think that I want to run down the road of some quality CD music.

I'm currently running an XDA-1 DAC. Right or wrong, I kind of view it as being a budget solution, but it's doing fine as the converter for my Sonos and Apple TV. My dilemma is whether I should get something along the lines of a decent CD player in the form of a Cambridge Audio 550C and either run that through my XDA-1 or get a better DAC. The second choice would be to get something like the 650C which has dual DACs and just run that straight through the analog outs.

I guess what I'm asking is, will I get better results with the 550C and an external dac or with getting the 650C using its internal DACs.

My next question is whether something like a DacMagic would be an upgrade from the XDA-1, if I go the route of the 550C and external dac. For that matter, would the internal dac of the 550C be better than either the XDA-1 or the DacMagic?

I'm just lost.

Thanks.