Unfortunately, the USB port on the Airport Express does not output sound. It only works with USB printers. The 3.5-mm audio/optical jack is the only way to get sound out of he Airport Express.
If audio only I like the Squeezebox Touch, but beware that USB connectivity is not officially supported and pretty much only DACs that adhere to the USB audio specification will work. In my main system I use a Mac Mini to get video and more flexibility, plus options for playback software, which absolutely makes a difference in sound quality.
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