Upgrade help

Best way to upgrade
Present system is about 10 years old Majik amp Genki CD and a pair of Keilidh speakers bi wired with linn cable.

I have an iMac with about 60GB of Lossless music ripped from CD's in iTunes and also on my iPod 160gb classic.

Was thinking of getting an Apple tv and using the optical out via a dac then phono cables into an Aux on the Magik, would the sound quality from this set up be better than connecting the iPod through a dock then into the amp

Would the 1st option be as good at the Genki Cd player

want the convenience of streaming but want to maintain the quality

or would i be better changing the Majik and getting the entry level DS

any thoughts on this would be appreciated

Thanks
Al