To the OP - well done for comparing stuff at different price points, and for not assuming that expensive stuff is inherently better - it would be illuminating if the magazines did the same...
I "upgraded" my Linn DS by adding a Behringer DEQ2496 as the DAC, and swapped the DS for a Squeezebox Touch as there was absolutely no difference between the two as streamers into the same DAC and the family like the SBT interface. Behringer make their stuff in China, sell in huge quantities and the quality is pretty variable, and I suspect there are variations in sound quality between different production runs, but if you have a good one, it should be pretty close to the Linn and the Naim, but they are built by expensive UK labour, have cases that cost more in materials alone than the Behringer costs complete, have a dealer margin built in to the price and are much nicer objects to own, and show off to friends.
I think we are in a really great time in home music reproduction, as there is some stuff that works well at really cheap prices, and there are some gorgeous luxuries if you want, and can afford them.
No-one gets mocked for buying a Rolex that tells the same time as a Swatch, and we should admit to ourselves that we enjoy the equipment (for those that do...) as well as the music.
I know a chap who attends classical music performances at least a dozen times a year, will travel abroad to hear particular conductors interpret his favourites, and has a hifi system in is house that sounds frankly awful. He's fully aware of that fact, but he says that he knows how to work it, and its only there to remind him of the music, not try to reproduce the same experience at home, which he feels is a completely daft idea!
Excellent post sir!
My wife has the same view as the friend you mention!