Yes, I thought I was buying a lower end TV. But, the resolution is better then more expensive ones and it has a long list of plugs and features. It's a Dynex.
I asked myself the same question about my Samsung 32" LED TV which has analog audio outputs. I concluded that it does have a DAC in it. I have to play CD's through my TV because my new blue ray player doesn't have analog audio outputs to feed my realistic stereo receiver and speakers. It actually does a decent job too. I don't use it enough to buy a cheap DAC to play cd's.
My LG panel can be used as a DAC, I have not done so. My Onkyo completely blows it out of the water in it's own right, and more so with the ASUS Xonar Essence sound card.