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“I’m not sure that adding a digital input to a Part 15 FM transmitter is really worth it – kind of overkill, I would think.”
To some degree, it depends on the quality of the D/A converter in the unit, but keeping a digital signal in the digital domain as far as possible is always desirable. S/PDIF signals are not nearly as susceptible to RF interference, and TOSlink not at all, therefore, a digital signal arriving at the transmitter will be the same as that coming from the CD, rather than one previously converted to analog and carried on line-level wire, especially in an environment where RFI is prevalent.
Anyway, I suppose that’s the reasoning behind having digital inputs in the unit.