spend 1,400 or less and buy a mark levinson 36 dac. You will be floored when you hear the improvements. Good luck. thats the most bang for your buck.
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A grand on a DAC would buy no real improvement over the DACs on the Pioneer and B&K. I'd buy a good used tube preamp and run the B&K through it. You'd be surprised at how much information is NOT passing through the B&K. You've got to spend a whole lot of money on a processor that would convey the music like a good used tube pre would.
I had a CJ PV12a line stage and loved it for a long time. Very musical. It was not until I tried my Audio Research LS22 that I realized how much I was not hearing and the transparency of the AR is amazing. The AR is more linear and less forgiving than the CJ product so it will reveal limitations from your other gear ruthlessly.