It's a fair question since the UMC-1 obviously has an integrated DAC and since the XDA-1 was unfortunately not designed as thoughtfully as the USP-1 regarding integration with an HT processor like the UMC-1.
For two channel playback of digital sources, the XDA-1 has two huge advantages over the UMC-1. First, it has fully differential high quality DAC chips that (I suspect) were selected and optimized for high resolution two-channel audio compared to the UMC-1 which was designed to decode a wide range of digital audio formats for DVD/blu-ray but presumably with some compromises made for two-channel audio playback (to my ears anyway). Second, the XDA-1 has a vastly superior, perhaps even massively overbuilt, differential analog output stage that can be connected directly to differential amplifiers like the XPA-1/2.
If the XDA-1 had been given an analog HT passthrough input, similar to the USP-1, UMC-1 owners could have placed it between the UMC-1 and their XPA-Series (or other amps with differential XLR inputs) to create a wonderful hybrid two/multi-channel system. Alas, they did not, so you have to just connect the XDA-1's analog outputs to one of the 2-channel analog inputs on your UMC-1 and then move/connect S/PDIF (and possibly USB for a PC/MAC source or AES/EBU for fancy sources) digital sources to the XDA-1. Next, be sure to configure the mode on the analog input that you assign to the XDA-1 to "Direct" for 2-channel analog signals or you will hear NONE of the benefits from using the XDA-1 (the UMC-1 converts analog input signals to digital first, does some processing on them, and then converts them back to analog if left in the default "Stereo" setting. Yuck!).
Although you will not be able to realize the full potential of the upgraded analog output stage on the XDA-1 when using it this way with the UMC-1, it should still provde a substantial upgarde in sound quality for two channel digital sources vs. using the UMC-1's built-in DAC. When used in "Direct" mode, the analog preamp in the UMC-1 is actually pretty darn good, so for $299, the XDA-1 is almost certainly money well spent if you are a 2-channel audio fan and you have lots of two channel digital sources and/or high-resolution digital music.
If your pockets are a little deeper (and you have space left in your audio rack), go ahead and spring for the USP-1 at the same time. Since it _does_ have the HT passthrough feature, it will integrate well with your UMC-1. Move all two-channel analog sources (including the XDA-1 outputs) to the USP-1, which also includes bass management for folks with small front loudspeakers and a sub. As good as the UMC-1's analog preamp is in "Direct" mode, folks tell me that the USP-1 is that much better, so including it with the XDA-1 will get you closer to the sound that you would experience if the XDA-1 was driving your amps directly.
The Emotiva folks are apparently working on a new X-Series preamp with fully balanced inputs (the XSP-1?) that will provide an even cleaner signal path for high performance sources like the XDA-1 for folks like us with hybrid two/multi-channel systems.
I hope this helps some...