I use a Cheap Sony DVD player hooked upto my Rotel DVP-980 DAC for a while now.
A long time ago I did do a simple non-scientific, partially sighted (

)listening test to compare my DVD/DAC to my Arcam DD72 CDP. I honestly thought that the DVD/DAC combo sounded as good ( or as bad for any snobs) as the Arcam and so flogged the Arcam and have been using the DVD/DAC ever since.
I wonn't even bother discussing the Sony DVD as it is just a cheapy that i bought on a whim. I have set the Audio setting on it to downmix any music DVD's i own into straight stereo through the DAC. My DAC is something that i rather like. It has 5 coax and 5 optical digital inputs along with a kind of recording loop ( eg 2 in and 2 x out ). The unit is remote controlable and so during my Demos i was able to Flick between the Arcam CDP and Sony DVD at the flick of the remote, I suppose my demo was Partially sighted though as i got my wife to choose and fit the Coaxial digital leads into whichever input she chose. This was great as even though I could switch between the units i didn't know which transport i was actually listening to. Even though I strained and concentrated madly to try and find a very noticable difference between the two i couldn't. This made selling the Arcam CD72 so much easier.
I now have my computer connected digitally to the DAC via an optical cable and plan to hook up my sky box too , if i can ever be arsed.
Sometimes my Silver disc spinner sounds better than my LP12, sometimes it is the other way around. Mood swings , eh ? (

). I popped the lid off the DAC the other day for the first time just to see why my DAC was so heavy and saw a good collection of top brand components ( eg 35 Blackgate electrolytics for starters). I know that you just can't judge an item on how many posh Capacitors it contains , however this makes me think that somebody in the design process made a bit of effort, or maybe they where just loading it full of 'badges' for the reviewers, either way it sounds OK to me, which is the main thing.
Do try the DVD/DAC combo Saab, if only to dismiss it as 'not for you', if my Rotel DAC ever goes Tits Up, i'll probably try to get it repaired, maybe even 'Breathed on' and improved, if the Sony DVD smokes then it will get trash canned.