Audio lovers need to realize that a DAC is not just a digital to analog converter. It also must amplify the analog signal to a reference output voltage making it useable to the preamp, integrated amp or power amp in some cases.
The analog amplification circuitry is typically very minimal in inexpensive DACs. This is where the opportunity is to greatly improve the sound quality. The best DACs and CD players for example pay much more attention to the analog amplification section circuitry. This is where the large power supply enters the picture (the best use low noise r-core transformers, e.g. Luxman) in addition to filtering and storage capacitor banks. Look under the hood !
How does a great analog section affect the sound? Superior low noise performance and a lively, exciting micro and macro dynamic sound with lots of energy.
The sound of basic DACs is underwhelming by comparison.
Get one and you will know what I mean.