My experience with Rotel and Arcam are that they are pretty much on opposite ends of the spectrum sonically. Which one is "better" is a matter of taste. FWIW, I used to own an Arcam FMJ-CD23, and I bought my dad a Rotel system a few years ago, so I've spent some time with both...
IMHO, Rotel tends to have a dark and weighty sound, whereas Arcam is more open and lean. Both IMHO are smooth, although Arcam might win the smoothness battle between them.