Just installed a bluesound node 2i , quality not so good

You don't "need to run this through an external dac".  If you want it to sound better, then you can.  If you're happy with the sound, then don't.

I was held hostage by a group of audio terrorists,and they forced me to use a DAC. It wasn’t like I had a choice! 

    Seriously, for me,I ran node products for a couple of years through the analog outs. I was pleased with the sound. I just wanted to see if I get better sound. Just like any other facet of this hobby. 

+1rocray!
I  was wondering who was holding the gun to whose head to "make" them use a DAC.
Op asked and was given opinions, nothing more.

I have I have bluesound wired to avr now, can I bypass avr and direct wire to amp? Can amp have two sources of input? Not sure it would be smart to do this?

I am being held hostage by my speakers holding out until they reach their full potential.  Captivity is challenging, expensive, and frustrating due to a lack of clarity in the marketplace relating to a vast maze of complex components.  This forum has proven to be of great value.