CW, it isn't entirely clear what your "the way to go?" question refers to. I never use a direct or pure mode, since I want all processing possibilities available and there's no significant disadvantage. In a "pure" type of mode the noise floor is slightly lower, but this isn't meaningful since it's already below audibility at typical volume settings from the usual listening position.
If your question about the turntable setup refers to it being connected to the speaker at the same time, the previous problem still exists. Otherwise, there'd be no reason for it to "degrade" the sound to any extent other than might be inherent in that format as compared with the CD.
