A friend of mine had the ARC Ref 3 mated to the Theta Citadel monoblocks. In an effort to move his system to a Music Server based system, he auditioned the Gen VIII. IMHO the Theta sounded more natural than the ARC, in his system. The only area where I thought the ARC did a bit better was in the midrange. The differences were very subtle though and unless they were compared side by side I don't think you would notice them that much. Again, this is all related to the sound in his system. YMMV depending on your associated equipment. As a pure DAC the Theta may be the best I have ever heard.
Good Luck.
Good Luck.