Bluesound Node2 with outboard DAC

I have read that Toslink cable only support 24/96 resolution, not 24/192 and HiRes files. Anyone confirm This? 

I do not think it is the toslink cable itself that is limited to 96, rather I think some early versions of the input and output sections were the limiting factor to 96.
However no digital expert here by far.
I have always used spdif output and that shows up on my dac as 24/96 because my dac does not support the full MQA unfolding which is the only way you would get 24/192 through a bluesound product or to use its own onboard dac and output via single ended analog outputs to your amp. But to my ears I found the sq to be inferior by far compared to a good outboard dac. 

I visited Audioconnection last year and Johnny was demoing the Bluesound Node/Vault for another customer. He played the onboard Bluesound DAC and then switched to an Ayre Codex. The difference was noticable-for the positive.
So, Yes, using an external DAC will improve sound reproduction.
I use both the optical and USB outputs.
B

Uberwaltz and Mahler123. Thanks for feedback. I figured outboard DAC would be better. Question I'm asking is using a good or really good DAC like a Mytek Manhattan is the Bluesound worthy of good enough and quiet source to be worthy of using with a really good DAC, capable as a source. I hear this matters also. My OPPO bdp105 sounds pretty good. I think I can do better plus it disconnects a lot during streaming and have to start over where you were on Tidal is a pain. 
How's the Bluesound for keeping connectivity? 

@Initim 
  I was using an Oppo 105 in the same system as my Vault2.  At first I was using the Vault2 as a stand-alone source into the preamp and quickly realized that I preferred the CDs that I was burning into the Vault2 played back from the Oppo.  I then plugged the digital out from the Vault2 into digital inputs for the Oppo and much preferred that.  It didn’t sound identical to the same discs played back natively on the Oppo, but very close.  After a while I added the Manhatten, using both the Oppo and Vault2 as digital transports, and they both sounded much better via the Mytek.  The very subtle differences between the Vault2 and the Oppo 105 May have been due to the differences between the coax and toslink inputs on the Manhatten, or due to differences in the 2 transports themselves, but they are very close.
  When Oppo announced that they will cease making disc spinners I bought a 203 and replaced the 105 with that.  I moved the 105 into a home theater system in a different part of the home and there is a Bluesound Node2 in that system.  I now run the Node2 into the DAC of the 105.  This has improved the sound of the Node2, but the rest of the HT system is made of mid fi gear that costs a fraction of my 2 channel  system, and the upgrade for the Node2 isn’t as blazingly obvious as the upgrades in the two channel system.
  The take away would be that the Bluesound products are fine as digital transports, but like any component, you need to consider the entire system before you make your choice.
  I didn’t understand the last part of your post regarding connectivity.  Can you rephrase that for me?