To DAC or not to DAC ?

I'd consider a few options:

1.  Upgrade the DAC with a built in Streamer - I upgraded from the Node 2i to Moon 280D and it was a big deal.

2.  Upgrade the preamp to a preamp with a built in DAC.  I used the internal DAC on my McIntosh C2600 when I had my Node 2i after comparing the two

3.  You can get a separate DAC...I've not pursued this path but many folks have.

You have the right idea regarding purchasing a new DAC to use with your Bluesound.  It is common knowledge that the Bluesound DACs are the bottleneck of any of the Bluesound units.

Regarding those suggesting you replace your freya+ preamp, it is true that it is not the highest cost unit, but from every owner and professional review it appears to come as close to being one of the highest bang for the buck preamps on the market.  Maybe change the flavor with some new tubes.

Just be aware that often those recommending you flip your gear to what they have now will have totally different gear in a year or two and be just as hardily recommending that gear then.

DAC in Bluesound is way behind rest of system...Freya+ is great for the price, though for me also not as good as your amp and speakers...

Just be aware that often those recommending you flip your gear to what they have now will have totally different gear in a year or two and be just as hardily recommending that gear then.

My amp was bought last year. Prior to that I had an amp for 12 yrs. The preamp was bought 2-3 yrs ago. Prior to that I had another CJ preamp for 15 yrs. I've had my speakers for 18-20 yrs. You should not speak in generalities about that which you don't know. I love the music, NOT the gear, though it is a tool to listen to the music and therefore important

Yeah you’re really cheaping out here in the context of your system.  Why???  Raise your budget $500 or so and at least that gets you into the realm of the Soekris 2541, Musician Pegasus, Gustard X26, etc. that surely will upgrade your sound quality significantly over the DAC in the Node.  After that I’d agree the preamp should be upgraded as well as that will make a huge improvement and allow you to get much more out of your nice downstream gear.  Last, I’d avoid buying multifunction boxes (preamps with DACs, DACs with streamers, etc.) as it’ll give you more flexibility to upgrade, avoid obsolescence, and potentially get better sound quality.  Hope this helps, and best of luck.