Rec. vs. DVD: who should be responsible for DAC?

I am in the process of putting together a system. I currently own a Rotel RSX-972 receiver. I am now in the market for a DVD player. Specifically, I am looking at either a Panasonic DVD RP-56 or a Rotel RDV-995. Though not directly compared by my own ears, I am going under the assumption that the Rotel will produce a better audio output (I assume that implies analog). I have two questions:

1) Is there a distinct advantage of sending, from the DVD player to the receiver, an analog or digital signal? (i.e. using DAC of the receiver or the player)

2) If the DAC of the receiver is to be used, does it really matter which player is purchased to provide a digital output? (Most players in this range use similar drives anyway)

Note that the Panasonic is considerably less expensive and probably has superior video quality. Though I currently do not have a hidef TV, I may upgrade someday. At this point, however, the audio quality is my main concern.

Thanks