Going from an ARC CD-2 to Sony XA-777 ?

I presently have an ARC CD-2 that I'm considering upgrading. Does it make sense to go to a SACD player? Will the Sony sacrifice redbook playback? I presently own 700+ CDs that I would NOT replace, but I have begun purchasing hybrid SACDs where available for new titles. My system utilizes an ARC Ref 2 and BAT VK-60s, but it also includes a Classe 75 that has 5.1 inputs and a Classe 150 that I use bridged for the center and rear channels for a multi-channel SACD. There is also an REL Stadium III that is presently in both the 2 and multi-channel setups. What I would plan to do is run the stereo outputs into the ARC and the 5.1 into the Classe. In both cases the ARC Ref 2 amplifies the main speaker signals.
See if you can borrow a very good SACD player and try it in your system. You may or may not find that it competes on redbook with your CD-2, and you may or may not like the sound of SACD (probably you will, but no guarantees).
I have the XA-777es, It is a fantastic sacd player and a good redbook player. I think the CD-2 may be the winner of the two on redbook cd's. I am happy with mine though and plan on keeping it for a long while, I've had it for a year now and have had 0 problems. It sounds it's best when you run it in two channel direct mode through it's two channel analog outs for two channel and use it's multichannel outs for multichannel only. I use mine with a passive pre (Bent audio TVC-102) for all two channel listening. On the other hand, I have never listened to the CD-2 and only know of it's sound by what I have read.
I do have the ARC CD-2, and I think it's one of the finest cd players I've ever heard. I've yet to hear the Sony that can beat it on the redbook standard.