Lumin D2 Dac/Streamer Vs 2021 Node/Denafrips Ares ii or Chord Qutest

Can’t speak to the Denafrips but the Qutest is an incredible DAC. It will sound best with USB. One advantage of the Chord is the filters. You can tailor the sound to your liking. Warm filter would be perfect for the hot recordings to mellow out some harshness. Incisive filter would be great with good quality recording. Solid DAC overall and a very safe buy. You would have to spend significantly more to beat it.
Another option is the Benchmark DAC3 (whatever variant that’s within your budget). Slightly better SPDIF performance than the Qutest but has no filters. A fine sounding DAC.
The best option would be to pick up a U1 Mini together with whatever DAC you choose to get and call it a day.

You can usually find a Lumin U1 mini for about 1700 or so at some dealers, that’s what I paid. Add the Ares II and you are in at your budget. I wouldn’t go with the D2  because the dac is almost an afterthought. But the Lumin streamers are a noticeable improvement over the node. And after living with a Pontus II for a short while, I’d have no problem recommending a Denafrips dac.

IMHO, the Blusound isn't in the same league as the Lumin or other alternatives in your budget SQ-wise. Many like the experience using the BlueOS, but if that's not your plan, there goes that benefit. 

I used the Lumin app with other gear for years, and while it's more intuitive & functional than most DLNA apps, reliable connectivity with network can be wonky & frustrating, even with a mesh wifi setup. (This drove me towards trying Roon which IMHO is best experience by far)

Qutest is priced more closely to Denafrips Pontus II (which I own); the Ares II is much lower priced. IMHO, all these are revealing, but that's a good thing. I'd say the the Pontus is relaxed in a way that most non-R2R dacs aren't...that might help with the poorly recorded music you mentioned. The Ares leans in the same direction but with less ability to untangle complex arrangements and less instrumental body. 

Lastly, whatever you do, please consider a plan that avoids Airplay for your library playback. It's limited sampling rate will invalidate your well thought out investments. It's junkyard tires on a new car. Cheers,

Spencer

I’ve used a Lumin D2 extensively while working part time at a local dealer. When it came time for a purchase I chose the Node2i because the user interface and stability of the app was so much better than the Lumin. I’m  not computer illiterate or anything but the Lumin app was frustrating. Blusound,  like all of my Apple products, is intuitive and reliable. Even with a generous discount on the Lumin I preferred the Node2i because it just works.  
 That said the DAC in the Node2i is definitely a limitation and I’m currently researching an separate one. Everything I’m reading points to the Denafrips Ares II for my budget.   

I like my D2 and its currently being used with Roon.

Be aware if you want the just use it as a streamer with Tidal you would have to use the Lumin app or Roon as the D2 does not work with Tidal Connect.

I’m hoping Spotify HiFi sounds good which would mean I can remove Roon.