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No, the sound quality can be better than a CDP for the same money, you just have to make sure that you rip your CDs using a lossless format, not the default mp3 format. If you rip using Apple Lossless (easy to make the required changes in iTunes' preferences menu), and send the music using an Airplay device, the limiting factor for sound quality will probably be the receiver and speakers. A £500 CDP may sound a little better, but you can make stuff coming from iTunes sound even better than that, for less money.
The "problem" comes if you decide to buy music from the internet. Much of it is ripped at lower quality. Good enough for listening on a portable device, but not as good as listening to a CD on a hifi CDP.
For this reason, I always buy the CD, and rip it myself. iTunes makes doing this very easy, once you have spent 5 minutes configuring it. With most CDs available on eBay for less than a fiver, it's cheaper to buy the CD than buy tracks from the iTunes store.
Get the receiver, put iTunes on your PC, rip some CDs using Apple Lossless, and have a listen. If you are happy with the quality, get the iPod/iPad to make it easier to control, maybe store some of your music directly on the iPod if you want - iPod or PC, it'll sound the same if you use the same files. If you aren't happy with the sound quality, consider your options - better Airplay device, or CDP.
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