Hi G, In a conversation with an Esoteric Exec. , he thought the processing needed for the new protocol was an issue/conflict with the volume control, though no one in Japan had substantiated that remark, he believed it to be true. I see or hear your point, one less component, one less set of cables, one less power supply, etc. Simplicity has its strengths, espiecally in HiFi. But, in my case with the Esoteric stuff, I had a better listening experience through the preamps, both the Esoteric C-02 & Ypsilon. Soundstage is much more natural with the Ypsilon in line, and as I stated a couple posts ago, the Ypsilon has a calming affect on the digital, although with the P1/D1 I hear none of the brightness or lack of weight with CDs that I heard with the K-01 espiecally. The Esoterics I had in the past were all excellent with SACDs, and the X-01 was great with multi channel, but at times CDs were lean and lacked the weight that so far has been one of the remarkable qualities of this player!