Just Getting Back Into Audio and Need Help

The Hegel integrateds tend to have pretty good DACs and I think some of them have built-in streaming capabilities as well, so they’d also be worth a good look.  Best of luck. 

Do I need a separate external dac?

The DAC in your integrated will be fine. IF you want to add room correction to your setup then get a Martin Logan Unison streamer which has ARC room correction and just run the optical out to your integrated. I am using ARC in my two channel setup and make an improvement beyond what just a DAC can do.

For a starter system, at an affordable / budget price, and integrated amp with built in DAC is the way to go. Spent most money (and time researching / demoing) on speakers. You can always upgrade later, when / if budget permits.

I recommend putting Rotel and NAD in your list to research / demo. Good luck. Enjoy your new system, and the process of putting it together.

I did the same thing a bit over a year ago. I rationalized that I wanted as much as possible in an integrated amp. I was going to save on cables..etc. So, I prioritized hearing the integrated and speakers together. I then proceeded to put together both analog and digital, but my priority was analog. Then I hooked up with a large internet dealer and a very helpful sales person. I would start off picking the integrated/speaker combination and audition with the dealers best DAC/Streamer or Server combination. I say this because my integrated had a very good DAC and phono stage, but I soon found out that this was a great way to start out, but maybe not ideal when you decide to sell a car, or two and buy an external DAC and streamer.  Make sure that you have the proper inputs for future expansion. For example, I wanted at least two balanced analog inputs. Depending on how much is handled internally with the integrated, accept that your other components might not be ideal, but at least you know that with upgrades to your system and your room, you should be able to match what you heard in the dealers showroom. After this, upgrading power cables and conditioners, interconnects, digital cables, DAC and streamer can be upgraded with time.

For me, I just moved into a new house and had only six months to put together my full system before my wife moved from California to Texas. Her move meant that I had to do all upgrades in six months. So, now on a spending freeze. I upgraded and sent back many components and cables and discovered the unfortunate truth that everything from the wall power to the wall/floor ceiling treatment, equipment stands, furniture…everything mattered. The most shocking realization was how much power cables and conditioners improved the sound and that the last Ethernet cable to my streamer was critical. After all, how could miles of electrical and networking cables be improved in the last few feet? I ponder that and that the universe is expanding, but the energy density per unit of space remains constant.

BTW…my wife figured things out pretty fast…That’s another story…

I think "need" is almost never a factor.  Your challenge is to put together a system that you prefer over your past memories.  It sounds like one of your goals is to minimize the pieces of equipment.

If you can find an integrated with a built in DAC that you like the sound of with the Focal speakers (I have Focal 836v speakers and love them), then you're set.

I can tell you that I love the sound of my Denafrips Ares II DAC and Pathos Classic One MkIII integrated amplifier (1960s Mullard Tubes) feeding my Focal speakers.  New the combination should be under $5k.  Based on the amplifiers you listed this is a bit more than you're looking to spend.