I'm trying to figure out which is the optimum setup for this, though the audible difference may or may not even matter.
The CDP is a Yamaha DV-C750, the AVR is an Onkyo HT-R520 left over from an HTIB (renumbered TX502 if I'm not mistaken.) The media in question is RBCDs.
The CDPs DACs are somewhat superior to that of the AVR. The question is, since my speakers are JBL L820's as bookshelves, they need the subwoofer, so I can't use direct/analog fully on the receiver, and I want to use LFE for other media, so I can't use speaker terminals on the sub.
Is there any benefit to using the superior DACs on the CDP over analog feed, even though the AVR would just ADC it, do the bass management, and DAC it again, or is it best to just go optical and skip the CDPs DACs.
The less processing makes the most sense, but I'm not sure if there's an advantage to using the better DACs first (eg, does the AVR ADC/DAC combo play nicer together than decoding digital directly from the CDP/CD, etc.)
Most of what I hear that's a difference between the two is likely pacebo, but I believe the sound stage is a bit wider over analog and more collapsed over digital. But the question to my untrained ears is if that wider stage is due to improved signal, or due to noise or distortion of some kind being perceived as staging, but is actually clarity loss.
Both I'm sure are close to indistinguishable, but, hey, choosing the better of the two is a free "upgrade" so why not?