Integrated Amp Vs. Outboard DAC

AE stops streaming during breaks between songs.  My Benchmark DAC1 is fast enough to start again but some other DACs loose first second of the song.  Remedy for that is to "fade" between songs.  Perhaps they fixed it in new version of AE? 

Great suggestion Kijanki.

I'll address your Zu question. As a Def IV owner, I'm very enthusiastic about the company's approach with high efficiency, high impedance speakers flexible enough for most any amp (why not?) but especially the SET and OTL's that so many audiogoners have expressed an interest in trying. Of course, you are more interested in the more reasonably priced offerings, still, I would encourage you to step up to one with their better tweeter. ( Owner, Sean Casey, & Co. offer great customer support too.)
The Zu has been a "keeper" in my high-turnover world.

I wouldn't have any problem going with a good integrated.  If you like the internal DAC, you're all done!  If not, you can still get an external DAC and connect it to the integrated and use it that way.  Thus, you are "future-proofed".

Hey Truman, in person how do the speakers look and what do you think about the sound? I have heard it is polarizing. 

I went ahead and with some trepidation decided to get an external DAC. Now I just need to settle on a good amp for around 500-600. I like the idea of the NAD's. Just wish they put a little more effort into aesthetics.