Well, having the home theatre option is certainly nice, Matt. Whether or not the HTS will outperform a standalone DAC depends of course on which DAC you buy. My suggestion to you would be to replace the Yamaha with a better disc player. The Yamaha is an okay CD player at best, and honestly not up to the quality of your other components, unless Yamaha produced some rare esoteric CD player that I'm not aware of. Judging from how you describe the sound of your system ,I'm guessing, not. You didn't mention the model number. Sell the Yamaha, and add, that money to what you would have to spend for a used HTS and you should be able to find a very good used CD player.Some suggestions would be a Rega Planet, or a NAD Master series M5, with SACD as a bonus. I'm sure some others will have many more possibilities for you to consider.
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