At what point is an external D/A converter warranted or beneficial


Over the years and after multiple "upgrades" I've become disillusioned with digital audio reproduction. As my systems improved in quality/resolution, the digital audio quality has equally deteriorated to where most listening is now done in analog. This makes my CD collection of in excess of 1000 titles pretty much useless. My digital D/A conversion knowledge is pretty much limited to whatever is done by the internal D/A converter of the equipment. That being a Lexicon MC12B processor and Oppo BDP103. As my choices of ICs went from basics to high quality resolution improved with a marked decline in digital SQ. I'm at a point where any Redbook CD presents a harsh, edgy, shrilly, bright, name it what you want, upper frequency. Changing ICs back to basic cables attenuates this along with resolution of the music played. You might say I'm at a loss. Do I live with less resolution or the digital limitations. I do not have this issue playing analog media. Would an external D/A converter be beneficial or a waste of money? 
Systems are: B&W 803D2 and surrounds,  Lexicon MC12B, Oppo BDP 103, AQ Columbia ICs XLR & RCA,  AQ Digital ICs,  Tara Labs speaker cables,  Rogue Pharaoh, VPI Prime . Analog front end shares the L/R front speaker and input from the Oppo. 
Is there such a thing as an external D/A converter for a H/T setup as the Lexicon processor is the oldest piece in the chain with most likely the weakest D/A converter. But how would that connect to avoid the internal processing.
Any suggestions or recommendations?

128x128gillatgh
You sound like a great candidate for one of the newer multibit R2R non-oversampling (NOS) DACs. Many people find them to be more "analog" or "organic" sounding than the more prevalent single bit or delta sigma DACs. A couple options in the $2000 range that offer in-home trials in case you want to explore this route:

This one uses low-level tubes in the output stage...
https://www.hifiwigwam.com/sw1x-audio-design-dac-1-signature-a-review-by-kevin-fiske/

Here is this designer's take on R2R NOS DACs vs. Delta Sigma DACs just FYI...
http://sw1xad.co.uk/technology_post/delta-sigma-vs-non-oversampling-r2r-dac-designs/

This one is solid state...
https://www.ebay.com/itm/132457413112?ul_ref=http%253A%252F%252Frover.ebay.com%252Frover%252F1%252F7...

There are others, but just a couple to get you started. Best of luck.
I really want to thank all who are contributing. It's all valuable. 
I tried the vcr tape idea suggested by millercarbon. Did it work? Actually yes it did and it cleaned up the highs nicely, not completely,  but nicely. But brother I'm here to tell you it's cumbersome.  Unless you want to listen to the entire tape finding a track is not fun or easy, rewinding is noisy and time consuming. It works but there has to be a better way.
gillatgh,

     I think I may have a good solution for you.  But I need to know if you have a full 5.1 home theater surround setup.  That is, do you have a center channel and rear surrounds and, if so, how are they amplified?  Separate amps or a A/V receiver?

Thanks,
  Tim     
@noble100, 
Yes H/T setup is full blown, front, center, surrounds, sub 5.1 setup. Processor and 5 Ch 250 W amp, D class. (The Krell died).
I'm open for all suggestions.
Ps. The only issue I have is the high frequency harshness, brightness whatever you want to call it when the digital source (Oppo) is in use. 
Maybe try Schiit Modi Multibit for only $250? I have that and top of the line Yggy and they both tend to sound more mellow and analog than my other options, also fed from an oppo 103. Use a coax cable. Still will not beat your analog. Never tried the Lexicon but I once had a very harsh Denon CD player that kept me in analog all through the 90s. Still there mostly.