I think you ask very good questions. I have swapped a number of streamers, DACs, well everything actually over the last decade… a couple times… along with extensive research.
First, no, entry level DACs will not blow away older high end DACs. Obviously there is a certain amount of, “it depends” in there. But I would unhesitatingly buy the Audio Research DAC 7. My personal opinion is Benchmark will imprint a detailed, analytical imprint on your system that will rob it of much of its musicality.
Aurender, Audio Research SP16.. excellent components.. definitely get the ARC DAC7. The ARC stuff is very synergistic (click on my user I’d to see my system) the DAC7 will be exceptionally musical… no comparison with Benchmark. I use a ARC CD9se as my DAC and brought home a Berkeley Alpha 3 DAC ($22K) and compared with my ARC… the difference was miniscule, but the ARC sounded better and at an initial cost of $5K less..
I think the ARC DAC 7 would put you on a course for a really amazing system. Years from now you can upgrade any of the components and you are in a perfect synergistic situation to go up the Aurender and ARC ladder. I can’t tell you how much I appreciate I slowly moved into the all ARC component route.. it has led to an incredible, detailed and musical system. The synergy is amazing.