I am not sure what is to be gained upgrading a V-DAC with a sub $500 dac given a squeezebox touch as a source. Nothing against the touch, just that I have never listened to one. That said you might check into the Schiit Bitfrost dac, providing the touch outputs on coax you could get the non-USB version with the Uber analog upgrade. The USB input can be easily added later if that need arises. Though I have not owned one there are many on this forum that seem to enjoy theirs.
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Take a look at the Schiit Bifrost - they have just upgraded their USB port which elevates this DAC into a "giant killer"
Also get the UBER analogue upgrade for truly superb audio
I have just upgraded the USB in mine and it amazed me how much difference it made. This upgrade is now standard with all new Bifrosts.
The performance of this DAC improves considerably with good cables
See this thread for more info