Um, things that are not being mentioned or likely considered here, is the room setup and acoustics. If you have a low 8' ceiling, or sit relatively far back in relation to your setup, you will be getting lots of acoustical challenges to muck up your sound - especially considering the configuration and design of the speakers you're using (tweeter over mid/woofers, and non-first order cross design).
The room acoustics, setup and tweaking are always going to be 50% or more of the sound. So you can't usually have a "how do I get better sound" conversation without including all that, really!
Still, I see you have a Wadia transport, and are mentioning DAC's. I've experience with your Paradigms and Rotel first hand, and can tell you that those components can be swapped out for a larger gain in sound improvement than your digital front end considerations!
You're talking about upper mid-fi speakers and electronics. Get some higher end more refined speakers and amp and preamp setup, and the sound would improve much more dramatically I think.
Still, yes, you must make sure you've addressed your acoustical issues. Otherwise that will hinder your sound quality greatly. So consider.