My ideal CD Player system would consists of a CD-ROM drive as a transport, hooked up to a universal decoder (SACD, DVD-AUDIO, MP3, DTS, Dolby, etc..) and then to the DAC. The decoder and DAC should be in the same box and the connection to the CD transport should be via firewire. The DSD data should be sent over the firewire and not converted to PCM first. The decoder should reside in software so that new formats can be easily downloaded from the web. Today's DSP chips should be fast enough for that, else we can always buffer the data with today's cheap memory.
The transport would have a few versions, with the basic version supporting single disc and the deluxe jukebox version supporting 10 discs or more.
Currently a few AVRs, namely Pioneer and Yamaha supports this concept to a degree. However, their Universal DVD player is still not cheap enough yet, in my opinion. The players can made cheaper if the decoders are removed out of the DVD player box. After all, the AVR already has a decoder, so we are paying for duplicate function.