Maybe just a small Class D amp with optical input would make more sense in terms of downsizing. I have to think about it...
Feature wise the
Topping MX3 probably meets your requirements and is very compact. However, Amir stopped short of recommending it based on sub-optimal DAC and power amplifier performance. It would probably sound just fine but spending more would get you better performance at least in the way of power output.
The
Klipsch Powergate is still available for $150 right now and Amir recommended it at that price point even though performance isn't spectacular. It has an optical input but the built in DAC, at least with USB input, is worse than the CCA's analog output. There have also been reports of overheating and reliability issues but I don't know much about that.
Does the volume control off the CCA affect the digital signal and influence its dynamics, if I put the volume down? Or is it a valid "tool" to adjust the volume? Then I would actually skip the DAC and focus on getting a power amp fist.
I don't know how the volume control of the CCA actually works but I see no reason why it would be worse then that of a DAC. I have used the CCA's internal DAC and volume control in simple background music systems. Usually paired with an integrated amplifier with auto-on functionality. I set the volume of the integrated amplifier medium-low so that the CCA volume will normally be at 80% or higher and friends casting to the system can't accidentally blow up the house.
I like how these simple systems work, but I admit that in my personal systems I always use an outboard DAC with my CCA's. This way I feel like I'm getting the most performance out of the CCA and a DAC with remote and extra inputs is more convenient and versatile.
Sell the Sherwood combo and only have CCA as source and DAC with volume control feeding a small Class D amp like a crown xls 1002.
If I were you this would be the route I would go with. While many might argue that it won't be audibly superior to the CCA sending analog output straight into a cheap low power amp, I like to rest assured I have an objectively high performance system. The Crown XLS1002 will certainly ensure that you have a copious amount of power. And as Amir has said:
In my experience of either power amplifiers or headphone, how much power you have available determines fidelity first and foremost. Lack of power results in anemic sound which seems to lack impact, and even resolution.
On the other hand, the review of the
Crown XLS1502 showed that these amplifiers are not excellent performers in the way of noise and distortion.
I recently purchased a new open box Yamaha P3500S for $250. It is rated at 2 x 450 watts into 4Ω, 20Hz ~ 20kHz, THD+N = 0.1% and there are
measurements showing it has very good performance. This is a good option IMO.
You could also put together an ICEpower 200ASC+200AC amplifier with modules from Parts Express and a case from ghent audio for around $300. This requires soldering and assembly though and performance isn't as good as Hypex based amps which cost more.
As for a DAC with remote the
SMSL Sanskrit 10th is a great low cost option but you should also consider the
SMSL SU-8 V2. The SU-8 has Tier 1 SINAD performance, balanced outputs, and a built in power supply unlike the Sanskrit which doesn't come with a required 5V adapter.