Cables schmables.

Last time I looked they weren't adjustable. I suppose if you want to choose your music to fit your system having a non-adjustable system would be OK, but me, I want to listen to EVERYTHING and I want it ALL to sound great. Having frequency balance that's adjustable on-the-fly is essential to me. As far as distortions being added, my own experience is that a well designed modern tone control like the NAD's are completely invisible sonically, at least to my ears. I could never tell the difference in a blind test. Vintage gear is a different story, I have heard a slight (and sometimes not so slight) veiling with some. I'd stick with the modern stuff.
As far as power conditioning goes, it depends on where you live. My house is fairly rural, and power conditioning makes no difference at all. Money much better spent on music. I'm sure if you live in downtown Manhattan you'd surely need something though.
Anyway, that's all just my opinion, and everybody's ears vary. I'm very sensitive to "bright", and so many recordings are mastered that way it'd be a darn shame to have to sit there and listen to them uncomfortably, when with the twist of a knob you could listen with a big smile on your face. Then when you happen to hit on a perfectly mastered recording you can hit the "defeat" button and smile for that one too. It's really not such a big deal guys, and it's kind of astonishing to me that tone controls are so reviled in the audiophile world. They make lot's of recordings sound better - shouldn't that be a GOOD thing?
Getting back to the equipment recommendations, there are also some nice integrated's out there with tone controls. The beautiful Luxman stuff comes to mind. The L-550A-II is a real honey. 20 watts class A. Would be a nice partner for your Zu speakers. It's currently at the top of my "I want that" list.
http://www.onahighernote.com/luxman/?c=8&id=31Also forgot to mention that I've read numerous times that the NAD C162 has a killer phono section. Here's a link to the Absolute Sound review
http://www.avguide.com/products/product-2929/