Hi audiomaze
I am going to hammer away at this, sorry Folks. Please, please do research modern DSP (Digital Sound Processing) and/or find someone highly skilled at modern applications of it. ANY downside is overwhelmingly overtaken by the amazing upsides, including maybe adding some tube warmth (my preference with any digital source) or whatever your flavor preferences. Something as moderately priced such as this DAC, for example, using relatively free Reaper & Foobar software can generate astoundingly great sound in a good system:
https://www.amazon.com/Headphone-Amplifier-Portable-SABRE9018Q2C-Screen/product-reviews/B073SSNMKK/ref=cm_cr_dp_d_show_all_btm?ie=UTF8&reviewerType=all_reviewsI am an old hobbyist...and can understand old school mindsets...the less in the audio chain the better. That said, DSP has taken this sound to levels never imagined given my skills and audio budget, thanks to my sound engineer 3,000 miles away, who has spent years refining his knowledge and abilities. See other my other posts.
If you have the budget and it is your preference to improve your sound by upgrading gear, I'm fully on-board with that! However, audiomaze began this thread in stating he has a 10+ year old dac and wants to move forward. There are ways today with a small budget. Check the specs on this portable dac (and others) for example vs your dac. We live in exciting audio times! More Peace, Pinthrift