The old Denon CD players do indeed have a nice magic to them. I was doubtful initially as well until I compared them directly. At the time I was considering a nice player from Cambridge, a new top of the line Sony or Marantz or the Denon. I ended up with a lightly used Denon DCD 1560 CD Player. To this day, I am very happy with it. I paid $120 for it back in 2003. The sound it puts out is solid and IMHO, rather neutral and natural, so good in fact, that it can stand next to modern CD players costing up to $2,000.00 or more. I think it can still be used as a reference player. Usually, if you want to see what these Denon CD players can really sound like, you need to connect them directly to your main amp via the variable outputs on the back. Then you'll see just how much degradation is being added by the pre-amp and just how amazing the sound is. A lot of people who hated these players back in the day was most likely due to the result of bad synergy with crappy dolby pro-logic receivers. Trust me on that!
As for build quality, except for the main transport door, the build quality is also top notch. The transport assembly and laser are top notch!
Can you buy something better? Sure you can! However, you'll be spending a lot more dough to find something better. The DCD 1600 is supposed to be slightly better than the 1560 too (although many say it sounds the same)! I haven't heard a 1600 but I have heard a 1650 and IMHO, it sounded relatively close to the 1560 - a very good thing indeed!
I think it would be a wise choice sticking with your 1600. If the repair bill it too much, you could probably pick up two used 1520's, 1560's or even an S series from 1995-1996 for the same amount. They all sound fantastic.
How can this be? Some people feel that because the CD was still relatively new, most companies invested in quality products and design and used reference analog systems as the "gold standard". As time passed, less and less $$ went into designing quality products and the companies starting cutting corners by using cheaper plastics, eliminating the better chips and using inferior parts over-all. Others feel that these old chips sound more analog than their more accurate, modern counterparts. Still, other feel that vintage stuff is just better. Personally, I don't know and don't care as long as I feel it sounds good.
There must be a reason certain old (circa 1989) players still sell for over $1,000!