10-20-11: Veerapaneni
I am going to use Logitech Squeezbox Touch which has digital output. I dont see Bryston Integrated has Digital Input option.
At your budget, you are likely to gain much better performance by using a separate DAC - unless it is one of the plethora of current market $1,000 DACs (they will provide little real improvement over the SB analog out) that only have a high sampling rate chip versus a full audio component with a good power supply and analog section.
Personally, I would look for a used DAC in the $2,000 range that incorporates more than just the latest chipset. You may even want to consider a CDP with digital inputs (like an Esoteric, Moon SuperNova, Levinson 390S, all of which sell for about $3K used - and several others).
Also getting back to the speakers, as I suggested earlier as an option and others have as well, a more highly efficient speaker may be a good choice. Realistically, how often will you be listening at lower volume levesl? Frequently the higher efficiency speakers perform better at lower volume levels, IME.