This is a really interesting thread and I am intrigued by the various views expounded. I use a fairly high end CD player (Esoteric K-03) but still feel my digital system is slightly more to my taste in it's presentation, perhaps as I have spent longer time with the sound of the external DAC.
I just wanted to mention, one thing that surprised me was the signature of various digital cables - point 11 here. In a revealing system, I was surprised at the impact of the digital cable. I currently use two Jorma digital cables (SP/DIF) and tried a few others (three or four brands, including Stealth etc.). Each very clearly made an audible difference. This is from personal experience and I am sure there are many who will be skeptical of this.
My experience with digital (Spdif) cables is similar. Very audible difference. Even with the same dac, which one sounds better seems to change with the transport