@dhollywood,
You can only run SACDs through the LKS (or almost all separate DACs that will accept .dsf files--and not all do) if you rip the SACDs to the .dsf files. Otherwise you will have to run your SACDs through your Oppo and its built in DAC, ignoring the LKS, using the disks.
You ask about how I use my phone. I have ripped all my CDs and SACDs and gathered other music by downloading PCM files all on to a hard disk. Initially it was a small USB disk. Now it's a Synology NAS. That disk is plugged into a small lap-top near the audio system on which I run JRiver. (The NAS can send the music files to the lap-top by wi-fi, but I find the SQ better if by hard wire) There is a USB connection between the lap-top and the LKS. JRiver has a phone app. Bottom line is that I sit in my chair and use the phone app to call up any of the music on the hard disk. I don't do network streaming, but if I wanted to I could just receive the streams through the lap-top. (I also run JRiver on an office desk top so I can listen to all of the music there too. JRiver converts the .dsf files to PCM for that computer. I use the desk-top for all the ripping and file management.)
With a screen between the speakers I do video with disks on the Oppo and sound out to the LKS, also youtube music through the Oppo using the coax connection.
Another option, but just for playing PCM files, as from the CDs, would be to use the Oppo 105 phone app to call up music from either of the hard disks and play them through the Oppo and to the LKS using the coaxial or optical connection.
@mahler123,
Ripping SACD disks is not "complicated". It's even easier, once set up, than ripping a CD though it takes a little longer as the files are larger. I do is put an SACD into the Oppo, bring up a small (free) program on any of the computers and press "execute." That's it. I'm sure you can set it up and do it. You might, as I did, even find an improvement in the SQ.
Yes, ripping all the disks and setting up a management system can be major chore. I found JRiver to have a long learning curve--but in the end it's really a great system to have where anything can be called up to play at your whim, and anywhere on the network, and without leaving your chair. And you have the NAS. For classical music listening especially, it is great to be able to quickly compare performances. You seem to have a large collection so I can understand the hesitation. But, on the other hand, keeping track of a large collection can be made much simpler with a good digital file system.