newbie DAC question

@kremrik no, not just that. With AV receiver you get room correction, bass management, upmixing, downmixing, object audio (3D audio), and some even got loudness curves (Audyssey DynamicEQ rocks, Audyssey room correction itself sucks though). Plus you don’t need to worry about interconnects. You lose a lot of quality with interconnect cables (unless you know what you are doing). Also, separates often got issues with power quality and grounding, hence all the talk about power cable, conditioner, etc, with AV receivers there will be 0 issues there. Another issue with separates is the volume control implementation, but I will stop here, don’t even get me started about input jitter and audiophile DACs...

I’ve spent a lot of money on the audiophile stack, a LOT of money. I sold it all. AV receivers are unbeatable unless you go pro audio stack. Audiophile setup is just scams in this day and age.

@coli I believe you - in fact, I've become a tad disillusioned with the "audiophile-grade" moniker that gets tossed around by "professionals". Mainly because I've been testing out different aspects of my setups and have consistently been surprised that I can't hear any differences; mainly with differences in DACs, interconnects, speaker stands, and speaker placements. These are things that we've all read should make a HUGE difference in sound quality, but I consistently found to be nonexistent. 

If you wouldn't mind explaining, how do interconnects have a bigger effect with an integrated amp (or stack of amps) vs an AV receiver?

Am I missing something here? Is there something wrong with your Music Hall integrated? I thought you were simply looking for a DAC for your CD player and for streaming. Seems you have accomplished that. 

Though your system is a budget one, at it's budget I believe it to be well balanced and capable of providing much musicality for the dollars spent.
Congrat yourself and enjoy!

Wherever you heard that the differences between dacs and interconnects would be "HUGE"...you should stop going there.  They've been telling you tales of Bigfoot and the Loch Ness Monster. 

The limiting factor in your case (setting aside the room, which may be perfect for your setup, we don't know) is your speakers.  There's nothing wrong with Elac speakers - they're great for the money.  But at the end of the day, they're $300 speakers.   I'm not saying they're bad speakers, not in the least, but encouraging you to swap dacs, or upgrade your interconnects, or playing with coax vs. USB vs. whatever is barking up the wrong tree.  Doing those things may affect the system (though I doubt it, as you've discovered), but the sound will still be coming out of $300 speakers.

If you want better sound, put every dollar you can into upgrading your speakers.    And if you're emotionally attached to the Elacs, or simply can't afford to upgrade them, then forget about this thread and enjoy the music you have now.  Playing with those other things is a waste of your time and money, and frankly I'm surprised I'm the first person on this thread to even mention a speaker upgrade, though I know it's not the question you asked.

@mesch there is absolutely nothing wrong with my amp! In fact, I LOVE my Music Hall. I think I was too influenced by the likes of Stereophile, Steve Guttenberg, etc the last couple of years as I've gotten more heavily into audio. Maybe DACs, interconnects, power conditioners, etc have a big effect on systems costing 10's or 100's of thousands of dollars, but I am beginning to doubt these same things will produce a noticeable difference in cases like mine (and anyone else who won't spend more than $1500 for a single setup).

@bcgator I completely agree with you. When I'm ready for an upgrade, my speakers will be the first target! However - I have never enjoyed music more than when listening to those Elacs. I am constantly amazed at how much I love them. So I'm not yet in any hurry to replace them. 

I'm in complete agreement with both of you. Also a little disappointed that the mainstream publications or authors seem to have lost touch with these observations you've made... It appears to me that these "audiophiles" are doing their passion a disservice this way.