-I think by eliminating what SD cannot do 'best' (ie DAC) i would argue
that the perceived value of the device would be higher.-

I don't think this is the case, as it's based on the premise that
designing something as a transport is somehow easy.

The reality is that 99% of external DAC's have a jitter transfer
function, to get the best performance from an external DAC therefore
requires detailed work on the digital out side of things, which is
similar in nature, if not in absolute volume, to that required for a
DAC implementation.

In fact, by placing the DAC externally you make it harder to acheive
the ultimate performance levels, since the digital interface is an
additional source of jitter which is over and above that you acheive
inside the player.

Andy.


-- 
Andrew L. Weekes
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