Where to go next, DAC or Preamp


I'm looking to make the next upgrade in my system and am looking for some advice on where to go next.  Here's my rig, which is used for both 2 channel and HT:

Emotiva XMC-1 Processor
Emotiva XPR-2 Amp for FL/FR (600 watts x 2 @ 8 Ohms)
Emotiva XPR-5 Amp for Center and 4 surrounds (400 watts x 5 @ 8 Ohms)
Focal Electra 1028 BE II Fronts
Focal Chorus CC 700 Center
Polk surrounds
JL F113 sub
Bluesound Node 2

I'm looking to make the upgrade to help with my 2/2.1 channel experience.  Today, that's all done thru the Node 2 via digital coax to the XMC-1 processor.  On the XMC-1, I flip back and forth between Reference Stereo mode, which is pure 2 channel without any altering of the signal, and 2.1 using Dirac room correction with my JL sub included.  I use the DAC in the XMC-1 (Burr-Brown DSD1796) as opposed to the DAC in the Bluesound Node 2 (Burr-Brown PCM5122). 

I think I'm down to either a dedicated DAC or a Preamp, and that's what I'm looking for some help with.  My budget ceiling is $2500.  Would prefer new for warranty purposes but am not opposed to used.

If I go DAC, I'm looking at the Mytek Brooklyn Dac + or the Schitt Yggy.

If I go Preamp, I'm looking at the Primaluna Prologue Premium.

Looking for opinions on what is going to be the better upgrade, the DAC or Preamp.  And if you have other suggestions for either option you'd recommend other than the pieces I've listed above.  

Thanks in advance for your opinions
snafujg

I would not upgrade either before improving your sources. For HT, I would get a IFI SPDIF iPurifier to improve the jitter for movies from your Smart TV and Blu-Ray player. This will reduce jitter for Dolby Digital and DTS sound tracks. You will be amazed at how good movies sound with this.

Then, for 2-channel, I highly recommend the Synchro-Mesh reclocker and a Reference BNC cable between the Bluesound and your Processor. This will reduce jitter significantly, to 18psec.

Both of these upgrades cost significantly less than a new DAC or preamp.

Steve N.

Empirical Audio

No offense meant but I would look towards replacing the Emotiva gear, one at a time.
No offense taken Stereo5.  That's on my long term list.  It's just hard to beat the price to performance that they offer.  I've had my fair share of issues with their gear, though, and will look to move on once the warranty is up.  Maybe ATI amps.  Possibly Pass Labs.  
I said that because I had their Dac 1 from about 6 years ago.  It was extremely bright sounding.