Setting up a streamer for a frien

@ml8764ag 

You are correct sir. Streaming is an acquired skill/taste and BluNode is the best start. Then one can move on at their own pace. I have but I still have the BluSound. 
Don't spend him broke if he does not even know what he likes.

I believe the model CD player is ESOTERIC - K-07Xs SACD/CD Player.

I had the Esoteric K05X and now have the K03XD.  Both models have three digital inputs at the back: RCA, USB and optical.  My streamer (Esoteric N03T) is connected by USB cable to the K03XD and sounds great.
It may be possible to find a $1,000 DAC that sounds better than the DAC in your friend's CD player, but I would be inclined to test that first.  Esoteric make pretty good DACs.

If you can feed the Node into the Esoteric it will sound pretty decent.  The most important determinant of of streaming sound is the DAC.  Transports matter, and a better transport will sound better (the rest of the friends system sounds like it is good enough to resolve smallish differences in components).
    As has been stated many times the Bluesound stuff occupies a certain sweet spot.  It is a great entry level piece, particularly if someone isn’t too certain that they are going to forgo a large CD collection in favor of streaming, or they just want to dip their toe in.  And it’s good enough, particularly if paired with a better DAC, to be an endpoint, and it is economical.  Certainly it can be bested, but its compatibility with every streaming service out there and it’s relatively good OS make it very attractive.

  A few more thoughts, RVW:
Did you recommend the Cambridge that we both own?  It isn’t much over the stated budget.  Also, where are the files to be stored?  Or is this listening only for streaming services and not going to include the present CD collection?