Looking for a DAC for the Squeezebox Touch

FWIW, I'm also looking for a DAC to pair with my Touch, and my top list includes W4S DAC2, Bryston BDA-1, and possibly Burson DA-160 (to be released soon). All three have discrete analog sections. A couple forum members tried the DAC2 and BDA1 in their systems and preferred the BDA1. A used BDA1 sells for about $1600, close to DAC2.
Hopefully Burson's DAC is a good contender.

Also, have you checked Soundchekk's toolbox to improve on the Touch's sound? These are mostly software options you can set up yourself: will cost you nothing, and is likely to improve sound.

I'm running a Musical Fidelity V-DAC (battery powered) with my Squeezebox v3. Sounds pretty darn good to me.

Ronrags: as you look into power upgrades for the Touch, don't overlook the battery-power alternatives for it.

Let me add that the whole battery power thing was accomplished using a $15 sealed lead acid battery and a $30 charger.

A PS Audio DL3 with Cullen stage 4 was just listed ( no affiliation ) for $875.00 with shipping. A pretty good deal in your price range.