I can't believe there is no difference

I just took home a Cambridge D500SE player to audition in my system. My favortite dealer recommends this player for anything below is $1500.

To give you some background, I had heard it before with a $4000 McCormick amp and Soliloquy 5.3 speakers. That day I compared it to a very expensive YMB player with the same setup. I could tell a difference but not that much really.

But what I can't believe is that the difference between the Cambridge and my $250 Panasonic DVD player is almost nil! The panasonic is known too be one of the best for video, but I'm sure is just average for audio. What is the deal?
Can someone tell me what I'm overlooking?

The Cambridge is using Tara Labs RSC Prime cables and a Tara Labs Special AC cord. The panasonic is connected via a Toslink cable to a Yamaha RXV-995 receiver. I know, I know... but that's supposed to be the next upgrade. Correct me if I'm wrong, but doesn't the player use it's own DAC with analog output and the the receiver's with when connected digitaly? The only thing I can figure is the DAC in the Yammie is as good as the the new 24/192 Crystal DAC in the Cambridge.

The slight differences I noticed, and these were only on maybe 1/3 of my CD's are:

1. the panasonic was slightly, very slightly brighter, but just as full. I hate to say bright, but it's just that the highs were a little more emphasized.

2. The Cambridge seemed to the slightest bit slower paced, maybe I'm confusing this with smoothness, I don't know.

I know the Cambridge is not an ultra-high end piece, but from what I've been told it should be significantly better than a cheap DVD player.

Then I hooked up the Cambridge optical (toslink) to the yamaha's DVD optical DVD input, leaving the analog hooked up also. I did a A/B with the remote between "CD" and "DVD" and noticed the subtle difference in brightness. So the only thing I can figure is that the panasonic DVD player/Yamaha combo gives me 99% what the cambridge does without having to spend another $400 plus cables.

Could it be that with a better amp, I may notice more differnce? Right now, I'm thinking allocating my funds elsewhere. I'm starting to lose confidence in the arguement for the source being so important.

oh yea, forgot to mention that I don't think it's the speakers because they're the strongest link in my chain right now. Soliloquy 5.3