Ronrags,
I am also after a DAC to pair with my Touch, but funds don't allow to make a move yet. However, I am very interested in the Metrum Octave. It's just under $1k. Has only a coax and an optical input (dealbreaker for some). It's a non-oversampling DAC, with a totally different topography compared to most DACs. Take a look at the 6moons review, and from the Metrum website you can also access a HiFi Critic review. Natural, organic sound is what most people report (reviews and users). I'm really interested in this one.
BTW, Steve at Empirical Audio is working on a new device designed to be placed between the Touch and a DAC, that allegedly handles jitter from the Touch and should be an improvement. That's another device that caught my interest.
Please keep us posted. As said, I'm after a DAC for the Touch too!