Dedicated CD player vs. Universal Player

I've been thinking about getting a blu-ray player for video and replacing my Yamaha universal player with a dedicated cd player. Question is do universal players compromise the quality of redbook cd? I've heard pros and cons but wanted to get some opinions. Also, what might you recommend for a cd player $500.00 and under? Any sleepers out there?
I would recommend a Cambridge Audio 640C V.2 or 650C as a dedicated cd player. I have a 640C V.2 and it is much better sounding to me on redbook than my Denon DVP-2200 universal player.
Interesting. Thanks for the input.
It also depends on whether you use an outboard DAC. It's good to have more than one player though.
I don't use an outboard DAC though I have considered it. I'd like to keep things a little simpler with fewer connections to contend with.
Do you have a Home theater processor or are you using the analog outs? A DAC would make it possible to get good sound with only one player and would lessen the number of inputs to your preamp. I still like to have more than one player. I have an Oppo universal Blu-Ray player and a Denon universal as well as a DAC.
I use analog, I'm not a true home theater guy, still 2 channel stereo for my listening. My Yamaha universal has the Burr-Brown 24 bit chip set that I see in a lot of DAC's. I thought about the Oppo universal as an option as well. Hmmm.
I would suggest an outboard DAC too. I think the technology for DAC's has moved ahead quite a bit in the last 5 yrs. A dac can be used for a computer based digital system as well, allowing you to eliminate the discs altogether. Don't spend money on another spinner.
Sorry, Cambridge DacMagic, or an MHDT Labs Paradisea
At the $500 price point, none of the DACs or cdps will be an upgrade to a universal player in the same price range. Subtle differences yes, upgrade no.
Interesting input. I had toyed with the idea of a computer based source or perhaps a server of some sort. However, with 700+ cd's on hand, I can't see me spending the time transferring them to either. I was curious as to the point of dominishing returns, the DAC's in many players are cutting edge.