Denon Link III versus Analog out

I am thinking about replacing my SONY SCD-XA777ES with Denon DVD-3930Ci and take advantage of its Denon Link III digital out to my new Denon AVR-4308Ci receiver as pre-amp to drive my Levinson.

I have listened to XA777ES vs. 3930Ci analog outs ; they are very comparable...I like 3930Ci a little bit more hence the reason to change.

However, I am wondering if I am wasting the 3930Ci DACs if I use its Denon Link III digital out and relying on the Denon AVR-4308Ci to decode ? anyone with this experience is welcomed to share. Thanks.
If you are doing anything besides 'direct throughput' the signal. even if analogue, is gonna be redigitalized to do any sort of eq, or 5.1 etc. So going via the Denonlink III is gonna save you multiple decoding, re-digitalizing, and then decoding steps.
The receiver is about as good as the DVD player.
(I own a Denon DVD5910 with a 4806 Denon receiver, via Denonlink III (the 5910 hdmi to the plasma screen)