Digital streaming options for my system are confusing

Does that matter for high end streaming? or only specifically for large digital files stored on my own storage

Something worth mentioning if you are going with the Bluesound ecosystem. The Vault is a better option if you want to digitize a CD collection AND stream music. When I bought the Node 2 I had many CDs ripped with ITunes which created file folders and album artwork (metadata) that Bluesound would not see. I had to place artwork into many of those album file folders and properly label the artwork. https://support1.bluesound.com/hc/en-us/articles/200271926-Why-is-some-of-my-Album-Cover-Art-shown-a...

Ok, so I did do the album artwork thing when I burned my CD’s. Does that have any impact on anything unless I have a laptop/tablet open when I play? Seriously, Im just a 48 yr old trumpet player trying to make things easy for everyone and sound really good to me when I have a few moments to myself.

The Node 2i has both analog and digital outputs.  The simplest connection is rca cables from the analog outputs of the Node to any input on your Mac.  You now have music playing.
This connection is using the internal dac of the Node and allows hi Rez audio files to be played via MQA decoding from Tidal.
A separate digital only (just the 1’s and 0’s) connection using a digital cable (could be optical or rca) to your Mac’s built in dac will also play music but will not unfold MQA files from Tidal.
You can have both connected at the same time and switch source inputs on the Mac to see which you prefer.
Neither choice has anything to do with the amplifier output.

So standard RCA are still easy and better?