Back to basics
Let's not discuss what music files you use. Because APE WAV and other lossless files are very different from 4-5M MP3 files. Only according to the similar MP3 files you said.
We always say that the reason why MP3 and CD can't compare in sound quality is the problem of decoding ability.
The general bit rate of MP3 files is 128K, and the best bit rate is 320K band 192K. And CDs are basically above 1000K, which is also the reason for the good sound quality of CDs. At the beginning, MP3 was basically made for MP3 format, so the decoding rate was mostly below 320K, so "the sound quality of MP3 and CD can't be compared" came from this. However, at present, in order to improve the sound quality, major manufacturers constantly improve the chip capability of mp3/4 and support lossless and low-loss formats. So this difference should not be too big. Some MP3 players have better sound quality than ordinary CDs (different CD players have different abilities).
But what you play on the CD is also an MP3 file, which is another matter. They returned to the same starting line in music files.
Personally, I feel that 706 here will be better than CD. Why do you say that? Similarly, MP3 file 706 is developed based on MP3. Naturally, there will be many technologies for MP3 sound effects and sound quality improvement, such as (DESS HD stereo and circuit chip design of the machine itself). On the contrary, playing MP3 is only an accessory function for CD, and there is not much emphasis on MP3 files.
Another difference between CD and MP3 is the output power. At present, Sony's MP3 CD has a long battery life, so the output power is only 5MW, so it is difficult to push some high-resistance headphones, and the effect will not come out.
Most CDs are powered by 10-20MW, so it is better to publicize the sound quality of headphones.
But you said Panasonic 820 is also 5 mm.
In a word, I think 706 is definitely better than 820 in playing MP3 files, and the cruise time function, carrying operation, earthquake resistance and so on are all the victories of 820!