KEF LS50 Wireless Internal vs External DAC ??

I am finding my KEF LS50 Wireless to sound warmer, fuller, and more spacious, with better resolution of image location, when running my streamer (Audio Alchemy DMP-1/PS-5 power supply) to Audio Alchemy DDP-1 DAC/Preamp into its RCA inputs (which are then internally converted via ADC and again DAC) than I am running my streamer direct to the speakers via USB.
Given the numerous redundant conversions at play, I speculate that the ADC conversion is so much more transparent than I imagined and that the internal DAC in the KEFs is so much worse than I expected that I would recommend others use a high-quality external DAC with these speakers (even if they are to be internally re-DACed within them). 
Anyone have this experience?? Thoughts??
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The Navis is a great option when it comes out. For now, given your sources, I'd recommend two items on audiogon: the project prebox2 dac and the exposure 2010s2 integreated with the silverlines. That would be a noticeable step up from the kefs and about the same price as an nadc368 and added mdc bluos module while even better performing.

Elac is great though: the Navis is a great choice as is the upcoming elac ddp2 to drive it, the ddp2/dpa2/ppa2 with any great monitor speaker (studio electric m4, dynaudionspecial 40, silverline minuet grand) is also a smart and flexible system!

Any of these choices would get you into a leagye if sonic reproduction above the ls50s and open up paths beyond redundant digital conversions. 
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Is it the internal DAC that is lacking or the USB conversion?

Its been my experience, with all the DACs I have owned, that the RCA S/PDIF input fed by a good quality USB to S/PDIF converter sounds significantly better than the USB input. And it also makes for no Blue Screen of Death that I found so common using DACs with USB driver software. 

It’s a shame they didn’t add RCA S/PDIF digital inputs on these. 

As posted earlier, a USB reclocker like the W4S might greatly improve the SQ of the USB input. 

I would be curious to hear the results from someone who has tried this.