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).
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.