Buy new CDP or just add a newer DAC?

I have a slightly used Pioneer 79Avi DVD player which I am now using for music. I am considering upgrading to a newer player, but was wondering whether I'd be better off just adding a new DAC rather than buying a new CDP.

The transport on the unit seems pretty sturdy and I've never had any problems which makes me think a DAC may be the way to go.

Any suggestions?

a dac with various inputs would give you the flexibility of using your computer for audio and possibly improve your music reproduction. i have not used your dvd player so don't know where it stacks up against some good cd players tho. the pioneer does have digital out right?
You are correct, get the DAC.
You've received good arguments for going with a DAC and I would add a couple more.

The area of audio where a lot of the innovative development is happening now seems to be in DACs, quality is going up and prices are dropping relative to the quality. A separate DAC makes for an easier decision if you want to upgrade.

Conversely, the part of a CD or DVD player that's ultimately going to fail is the transport and it's often not possible to get a replacement mechanism. Having it uncoupled from the DAC means not having to give up a perfectly good DAC when you need a new transport.
In past years I never ever would have considered a dac. It was suggested to me in various cdp recommendation threads I started. I did not want an additional box, power cord, interconnects, and the complete randomness of finding system synergy and the randomness of gaining improved sonic performance. Now, I've bought and tried several different dacs. I have to say that compared to a quality cdp, a transport + dac may or may not make a significant SQ difference. It depends on how the dac and transport fits in your system, just like every other component. But a computer + dac combination has really opened up my musical library streaming from the internet and it sounds very good. A dac affords more options and flexibility. I had to be convinced, over time but a dac is better than a new cdp, unless money is no object.
Starting with the right DAC will give biggest bang per buck both short and long term.
DACs are the future and provide the most flexibility and value. I especially concur with the folks who have discussed the benefits of adding computer audio into the mix. The ability to have your entire library at the palm of your hand and listen to anything you want without having to get up and find a CD and load it up is priceless. If you get a good streaming solution like a Squeezebox Touch you can even run hi res files. The time spent ripping your collection is a PITA, but once it's done and backed up, it's all there, lossless. DACs are of course "outdated" the moment you buy them, but they make a huge impact on the sound of your digital front end. There have been a lot of advancements with the digital processors and clocks to reduce jitter to negligable levels so that is part of your decision process. And there is oversampling, upsampling, and non oversampling to consider, along with DACs that offer multiple filters that you can adjust. Or not. Make sure you pay attention to the analog output stage and power supply of the DAC, and not just the digital processor part. Both are important but the analog output stage shapes the final sound a great deal and determines how the DAC will drive and interact with the other components in your system. Here, consider especially, is it a discrete output stage or does it use op amps? Many DACs can be also be used as a preamp to drive an amp directly (with digital domain volume control) as well as run into an analog preamp with a fixed output. For example, I use a Bel Canto DAC3 in my system and have run it as a preamp direct but greatly prefer the soundstaging and dynamics that my preamp provides, as well as greater flexibility for adding more analog sources such as a turntable. Of course you need to find the right cables and find the connections that sound best, but once you do, it's all good, and you can continue tweaking down the road. Enjoy the ride. I wouldn't purchase a standalone player again.
Thanks for the input. Now which DACs should I consider? My budget is limited to <$1K since my wife and I are in the process of adopting 2 girls which is going to cost us ~40 large.
I'm delighted with my Moon 100-D. I replaced my Musical Fidelity V-DAC with it. The sound was much improved – more transparent. I paid about $550.
Lots of threads already here on Agon suggesting DACs that might fit the bill.

In my mind, first determine what kind of sound will balance out in your system best. Do you want a softer, warmer, less fatiguing sound than current? In that case look for a DAC with a tube output perhaps. If you want to take a stab at reference quality detail and resolution with more of an edge perhaps, consider the Benchmark DAC1, which is a highly regarded technical reference standard type product in that general price range.
There are lots of good DACs in your price range. I, too, would recommend the Simaudio Moon 100D. I liked mine so much I upgraded to the 300D.