Upgrade Internal DAC of Node or go with Atoll ST120.

I have had excellent results sending the BS Node to an external DAC. Having separates has also allowed me to try different DAC's (e.g. the Denafrips Ares) and that has been fun. I had an Atoll but it was an integrated amp with no DAC. They make good amplifiers for sure but I don't know about the quality of their streamers and DAC's.

I am thinking about the Aune X8 with upgraded PS to go with the node. I have a Draco DAC but that has started to fail after just a few months of use. 

One very important consideration in picking a streamer that often doesn’t get enough attention when discussing performance is the user interface, how easy it is to find the music you want and control it. That’s one of the best arguments for keeping the Bluesound Node and going for an external DAC. The Bluesound software is excellent, easy to understand and easy to use. And you would keep that superior interface even if your next DAC isn’t exactly what you want, either.

The Draco is an excellent DAC, especially for the price (I own the Pegasus, and according to the review on soundnews.net the Draco comes really close in performance). If it’s still under warranty get it fixed/replaced and focus on upgrading your steamer. I’d look at buying something used that’s much better than the Node (Lumin, Aurender, Innuos, etc.). While the Node gets the job done it just doesn’t suppress noise near the level of better streamers, and noise suppression is one of the key aspects of getting better streaming performance. And I’d definitely avoid combo units as both DAC and streaming tech are improving so quickly it would be better to be able to upgrade those separately when needed/desired.  FWIW, and best of luck.

The Lumin D2 is now on the list as well as the Soncoz SGD1

So many options.