Pros & Cons of Buying an Integrated with Built-in DAC?

I agree with the above posts that you should buy the best possible sounding integrated amplifier that matches your needs and purchase a separate DAC.  Based on current market conditions, it seems, that DAC technology is constantly being upgraded (mostly new chips) while amplifier design, generally speaking, changes less frequently.  

I suggest you separate these two functions so that you have the option to upgrade either the amplifier, or the DAC, as your system and interest requires.  The separation of the amplifier and the DAC into two boxes maybe more expensive but will be worth it, in the long run, when you decide to upgrade.  There are many separate quality DAC's on the market today in many different price ranges that should work for you.  The separation of the amplifier and the DAC will give you the most audio system "flexibility" for future system upgrades and improvements.   

Thanks to all for your input. Clearly, the consensus is that I should not go the "Swiss Army Knife" route. 

onhwy61: no- I have no reason not to go with an integrated. In fact, I prefer it.  

hgeifman: my original rationale for considering an integrated with a built-in DAC was that I wouldn't have to buy a DAC in the future, should I be compelled to switch from CDs to downloads/streaming (not a change I want to make at present). However, your post has revealed the fault in my reasoning-- the fact that DAC technology is constantly changing strongly suggests any  DAC bought today will be outmoded by the time I might switch my source format-- the very outcome I was hoping to avoid! Thanks for setting me straight. 

MAN UP STUART!  Are you going to let a bunch on internet forum posting know-it-alls steer you in the wrong direction?  Are you really going to make a decision today about what might possibly happen a few years from now?  It's a scientific fact that nobody knows what's going to happen in the future.  My dog doesn't even know.

Seriously, buy the integrated with the built-in D/A and if at some point in the future D/A technology really does change, then purchase a separate D/A and plug it into an aux input.  Flexibility is wonderful, but it costs money and you still might not get it right.  Your most flexible option is to do nothing and keep all your options open.  Does that really make any sense?

I don’t believe an integrated with a DAC is a swiss army knife, although I understand the metaphor.

I have a Musical Fidelity M6Si. It includes a DAC. Overall I’m very happy with the unit as a whole. In my case I wanted an integrated and didn’t want to spend tens of thousands on separates (amp, preamp, dac, phono, etc.).

I think it comes down to budget and/or physical space limitations. In a perfect world where money is no object and space is virtually unlimited, sure, might as well get top of line separates in every category.

Key in any case is to look for something of optimal value. My M6Si MSRP is $3K and it can compare quality and sound wise to an amp, preamp or DAC separate that each cost that much.

I have Leatherman all in one tool and it's made of great steel so all of the units work perfectly and never getting bent.