I'm a little funny about redundancy in my system, and I insist on my DVD player pulling it's weight. Which means, I use it's internal decoders for 5.1 DD output into a multi-channel integrated (Arcam AV50). I use its analog-out for redbook audio, in addition to DVD-A and SACD playback.
What I gain is superior audio from the Arcam AV50, without having to resort to an A/v receiver (which include Arcam's less than optimal AVR100/200 and overpriced AVR300/350).
What I lose is DD from my cable box and XBox.. which are not priorities, but would be nice for the odd surround video game or HBO movie.
Is there such a beast as a DVD player with allows external access to the DD/DTS decoders? I was inspired by the Slim Devices Transporter, which also *doubles* as an external DAC. I would appreciate the ability to run the Xbox and Cable Box to the DVD player so that it *really* earns it's keep.
I'm in the same boat but have come at a slightly different angle. I going back to an AV50 from various recievers such as the horrid AVR100, a bright but superb Rotel RSX 972 and RDV995 Amp and DVD combo and the surprisingly good NAD T762 / T752.
I used to have an Arcam Alpha 5 amp /CD combo at college and still consider this the best musical system I've owned.
I'm hoping to get an Alpha 5 CD, chop in my NAD system and go for a neo Digits Helios X3000 networked DVD player. What DVD are you using ?
I've just realised this post isn't particularly helpful to your question, sorry !
The AV50 is nice... certainly a better Arcam sound than the AVR100 and AVR200, which are indeed horrid. The AV50 sounds very much like the Alpha integrateds, though with less juice. Thankfully Arcam offers pre-outs, so external Alpha amps are pretty cheap on the used circuit.