The main benefit of an external DAC is that you at least have a chance to feed it a low-jitter source. Jitter is the #1 thing that can prevent digital from sounding like analog. If your transport does not low enough jitter, you can add a good reclocker, like a Synchro-Mesh. If you decide to go computer audio or a server, you can use the DAC for this.
Secondary benefit is better power subsystem and less sharing of this if they are separates. This is the benefit of any separates, including preamp/amp versus integrated etc..
A world-class S/DIF cable for $275 is the BNC-BNC cable with RCA adapters.
Steve N.
Empirical Audio