Thanks for your feedback, I appreciate it. I guess there is a debate on the DAC quality. I am pretty sure that a dedicated DAC is better, but I am not sure if I can tell the difference. Since I live in Switzerland, it's harder to try out hardware and return it if I don't like it than in the US. In this case I am inclined to get the TEAC UD-301, which has everything I want, including a good DAC. I will also save some money to get new headphones, that's a great point!
Do people have better alternatives to the TEAC UD-301 that have the same features?