1350, what cable are you using out the Apple TV?
I'm also contemplating simplifying my digital playback. I've done a test over the weekend running a cheap toslink optical cable out the Apple TV feeding the Benchmark DAC, but I didn't like the results. The sound seemed more detailed, but there was a lack of focus. The whole frequency range shifted upwards, more airy highs but at the expense of lower frequency definition and impact.
I was considering getting the Audioquest Optilink 5 toslink cable to see if I can get a more balanced and focused sound.
Thanks,
iSanchez