@dsfreeh my thoughts about your question…
There are differences between DACs that’s obvious. One important aspect of “diminishing returns “ in my opinion is it is reached much sooner on a system that’s not up to the level to reveal the differences and make you appreciate your investment and not believe you were duped into buying a component the potential of which you just can’t realize because you have other bottlenecks in your system.
So basically my point is everything has to balance out. I have never heard a Schiit DAC or the Denafrips. With the denafrips figure anything goes wrong it will need to take a trip to China. That alone makes it a non-starter for my but that’s just my take on it. I would stick with something that has solid customer service and an authorized repair center in your country of residence. Just my $0.02