DAC or Upgrade To MX150 From D2V??

I'm using the SPDIF (optical) from the Sonos to the Anthem. For 2 channel, I've set the "music" setting so the Anthem does as little processing as possible to the original signal (no xover, etc). I've setup my ARC (Anthem's Room Correction) targets to "flat" and 2 channel (FR & FL only). I've also tried not enabling ARC at all and bypassing every setting I could find -- to get as close to the source as possible.

When I say "lackluster" I'm comparing the 2 channel settings in the Anthem (using the internal DAC of the Anthem and as little interference as possible) with that of another preamp that I sold recently (unfortunately). The old preamp had a setting that was called "direct" where it bypassed a good amount of circuitry and tone functionality -- to get as clean a signal as possible to the amps. From my a/b comparison, the easiest I can sum it is: it appears that the Anthem "won't get out of the way". The bass response is subtly different and the high's are a bit harsh.

I've heard how good my amp and B&W main's can sound with certain source material from the Sonos' SPDIF on my old preamp, but for some reason the Anthem can't get as close. I've also tried using the analog out from the sonos to the Anthem, but it was terrible sounding -- just muddy all around. This wasn't surprising; I didn't expect the Sonos to have any decent analog out. I suppose the real crux of the question is if anyone has had good results with a good quality analog output (from any device) with the Anthem's 2 channel balanced input. My thought was that I'd buy a decent (under $2K) DAC and feed the Anthem with that for my 2.0 listening. Anthem claims the major cost difference between the D2V and the AVM50V is partly the analog section -- and that has a sort of "direct" feature. I'm just concerned about spending another $2K when I could probably just bite the bullet and sell the D2V and get the McIntosh MX150 (which in itself has some drawbacks such as a poor upgrade path and possibly not as good a 5.1 performance).

As a sidenote, I love the Anthem for 5.1. It's extremely good at cleaning up video and upscaling to 1080P. ARC does a solid job of also cleaning up my sub's response (a Velodyne HGS18). I just love it for 5.1.

Thanks for everyone's feedback. I'm very interested in the Wyred4sound DAC2 based on all I read...sounds like a good fit especially since 99% of the 2 channel music listening I do is via the Sonos. Any additional thoughts/gotchas? I can't seem to find much of a user guide/manual for it. Does the remote use IR or RF? Can you engage the bypass without having to use the 12v trigger? What about other potential DAC's (unker $2K either here on Agon or new)? How about the PS Audio PWD? Does it have the sort of "bypass" functionality of the WFS?

For those ARC fans: I've tried ARC for my "music" setting, but I didn't like the results. I worked with a lot of folks from Anthem and tried countless configurations, none to my liking. I'm a firm believer in ARC for my 5.1 channel entertainment, but when it comes to music, I want to listen to sources undisturbed....warts and all! I like the coloration and somewhat high bump my N802's have in the lower octave. I'm a firm believer that sometimes a flat response is not necessarily what everyone perceives as good sound - that's what is so great about the pursuit of good sound. I may love what you hate. Some of this is very subjective.

@Javsystems - Isn't SPDIF a cheaper implementation of AES3 to begin with? I don't think the two are even the same.

I tried the coax instead of the optical. I can detect a slight improvement, but nothing that is comparable to my old unit. I'm buying a W4S DAC2 in the meanwhile. It's a no-brainer (also found and read the docs and reviews). Thanks Cbw723 for the recommendation.

Is the D2V is a good choice for an audiophile? I don't know if there's a better alternative at this price point that includes such great multichannel performance, video performance, upgrade path, etc. So for me, if I can find a good way to keep my D2V and use my gear for 2.0 with something like the W4S, I can't see ever getting rid of the Anthem. Did they misjudge their audience by not offering better 2.0 performance?

I just wanted to update the group as I got my Wyred4Sound DAC2 last week and have been listening to it for some time now. I have to say it blows the D2V out of the water -- through and through. Transitions are incredible, clarity, the low-end is back. I can't thank the group enough for the awesome suggestion. This unit makes my equipment sound like it should.

I was a bit surprised that it has a break-in period. The manual says that after 100 hours some of the brightness goes away and even after 200 hours it should start to level out. I basically have been "burning in" the unit as it's been on since it arrived. It initially did have that brightness and I was almost disappointed had I not read the manual. Sure enough, at about 100 hours later it's smoothed out very nicely...can't wait till 200, but in any case it blows the D2V away. My only complaint is that my remote came smashed up, but I sent them an email and my replacement is on its way. I still may end up replacing the D2V with the McIntosh MX150 some time in the future, but for now I can't be happier with my 2-channel setup and the D2V does a great job at 5.1 and also with video.