Flaws in this chain?

Thank you. So far I have not played anything hi-res through the current set up. I have yet to re-activate my Tidal account.

My ripped CDs are on an old iMac wired directly to the DAC via USB.

I will rip some CDs onto my new iMac (in a different room) and then play it through the current Apple TV set up and see what I hear. If I can't tell the difference then, well, caviar and truffles are wasted on the untrained palate and jitter might not matter to me.

Is the iFi SPDIF iPurifier you mention similar to the Schiit Wyrd and Eitr?

I don't see a  iFi SPDIF iPurifier with Toslink.

Try Googling "iFi SPDIF iPurifier" - the pictured optical port supports toslink via included adapter. I own a handful of these as well as a Empirical Audio's Synchro-Mesh. The iFi is cheap and convenient, and it does seem to clean up dirty sources somewhat. I have my Sonos running through Synchro-mesh right now, and it's the best digital source I've ever heard. Like Steve said, you get what you pay for.  

Thanks, I did not see the adapter.

I guess my point is why spend even $150 to correct (purify, decrapify) the signal from a $100 Apple TV? Seems like I should save my money until I can come up with a better wireless solution....whatever that would be and however much that would cost. Of course, if that solution is going to be $1000 or more then I guess the iFi makes sense.

As far as the Schiit devices they are only for USB and optical connections, not Toslink. So no help there.

I'll do some testing this afternoon to see what my ears tell me.

@n80 .. there's nothing at all wrong with your system, but if you want an increase in fidelity you have options. First you should be aware that the ATV re-samples all audio to 16/48 then sends the signal on to your DAC. So, if you want to listen to some high res (MQA) via Tidal the first unfold is done by the Tidal software, then the ATV will re-sample your high res back down to 16/48. That is a lot of unnecessary manipulation of the signal and your sound quality will take a hit. I think the benefits of Tidal HiFi is kind of wasted on the ATV. A streamer like the Bluesound Node 2i is terrific if you want to spend $500. If not, you could always go the Chromecast Audio route for a cheap ($35) streaming alternative to the ATV. The CA uses a combo 3mm/mini-toslink optical port so all you'll need is an adapter or a new cable (mini-toslink optical - standard toslink optical). Lifatec makes a good one btw. Best of luck.