I must have missed this thread first time around.
It's good to see that the PC/DAC combo is really gaining acceptance as a high quality audio source on this forum. It wasn't long ago when this was not the case. Perhaps the release of the DACMagic has helped in this regard?
However, for me, the audio quality is only part of the equation, albeit an important part. The real killer blow for my CDP is the convenience of PC audio. All my music is immediately to hand (or mouse) and just sooooo accessible.
PC audio has allowed me to rediscover my music collection. I used to be big on playlists, especially based star ratings. But I quickly tired of this approach. Now, there is nothing I like more than setting playback to shuffle on the entire music library. Who knows what's gonna come on next. Sometimes, the mix is a little challenging but it's never boring.
I still use my CDP. When I get a new CD through the post, I slap it into the CDP downstairs to have a bit of a listen before ripping it to my library upstairs. Other than this, the CDP mostly gathers dust and really isn't required.
Oh. I don't use AE. For hardware, I use simple PC, a WASAPI compatible soundcard with optical out (Xfi Extreme Gamer), a Beresford DAC, a DIY headphone amp and Grado SR80s. Software? Vista, Foobar2000 and flac. For downstairs, I stream to a PS3 over a wired gigabit network using TVersity.
I'd like to try a Mac/iTunes combo but am struggling to justify the cost. For what they are, they seem overpriced. I am hoping that a new Mini Mac will be announced and I'll be able to score an old one for sensible money.