The M10 doesn't have a digital input, but the Sony D50 does (optical digital input). You'd need a V3 with the optical output mod from Grace to use the V3 as a the digital input source for a D50.
Other than the D50, the Marantz PMD-661 is probably the next cheaper alternative (not including the MT). Most of the lower cost digital recorders only have analog inputs, not digital inputs. So they can record information represented digitally (as opposed to analog recording), but they only take an analog input stream, which then goes through the recorder's internal A>D circuitry to create the digital representation that is recorded.
Most of the more expensive digital recorders, R-44, DR-680, HD-P2, 702/722/744 can take a digital input, most of the cheaper and especially handheld recorder cannot. Of the smaller recorders that take a digital input, I think it is mainly the microtrack, D50, and 661.