Apple TV Streaming Sound Quality vs Streamer?

"Does anyone know if the node2i will bypass it’s own dac and serve to my Benchmark dac?"

Yes, except you'll not get the MQA treatment through Benchmark. 

There are some streamer products in the $700-$800 range such as cocktail, marantz, Cambridge and others that offer additional functionality etc.  Are these good options in terms of comparable sound quality as the node? Any in particular as you go up the price scale slightly?

I would get the Node 2 used. If you decide you want to upgrade you'll pretty much make your money back when you sell it. The next step up price wise if the Auralic Aries, but it is limited to Apple devices for remote control and from what I've read it only sounds better than the Node 2/2i if you splurge for the better power supply which significantly increases the price to ~4x that of a used Node 2.

Ok. Thank you all.

Jeenam55 - You mentioned Auralic Aries, it supports dsd up to 256. Good option. G1 is the latest version which supports 512. Thumb's up :) either one is better than ATV. 
My KD-2000 supports 64/128. Is there another component you know of that can be used to downgrade dsd 256/512 to 128?

No idea regarding DSD capabilities. I've never heard a single piece of music that was DSD encoded. I have a Job Integrated amp that can decode DSD128, but I do not have any DSD encoded music to give it a try.