Thanks for the great suggestions guys
TJHUB to answer your questions -
I am connected to the DAC via async USB. It sounded weak compared to coax initially, but after a firmware update the DAC-2 sounds at least on par with Coax.
Room size at the moment is 9ft x 16ft (a lively basement with wooden floors and a rug) but we are planning on moving house soon in the near future.
I did audition a peachtree nova (combined dac/pre-amp, and amp), but the W4S Dac and XPA-2, had a waay more fuller sound. The W4S Dac was just in a different league
I think my only issue is that sometimes high frequency sounds come through too prominently on certain tracks compared to lower frequencies. On some tracks this sounds amazing (Dave Matthews, Jazz, Norah Jones), but on others (like Sean McDonald) that sound great in the car, I find percussion instruments like cymbols and triangles to be overbearing and not at all like hearing a band live. Similarly on songs that do have more bass I cannot replicate the same type of sound I'm used to hearing on Vinyl with Monitor speakers.
I heard alot of noise about the DAC being too detailed, but I'm wondering whether the song towers or the XPA-2 are the limiting factors for this issue. Thoughts?
Your situation is not easy, especially since you plan to move soon. This alone would cause me to put any further changes on hold as your new room could potentially change things significantly.
You are currently in a very small room. Are your speakers on the short or long wall? If on the short wall, you are dealing with some serious side reflections that could alone be the cause of your "high frequency sounds come through too prominently" issue. You might consider some simple room treatments to test this issue.
I am under the impression that the XPA-2 is one of Emotiva's amps that tend to be a little warmer than some of the others. I don't believe that is a big contributor to your issue, but I can't be sure. If you were to replace one piece of your current setup, I'd replace the amp only after you try room treatments.
Lastly, the SongTowers are not strong on bass. Often times, a bottom end can contribute to mids and highs sounding over done. Add to this issue the idea that your frequency response below 100Hz is likely unbalanced causing some tracks to sound worse than others. An EQ'd sub could work magic in this regard, but again, only after having properly treated the room.
So here's what I'd do. Wait until you move before making any changes, or try treating the room, anything else could be a waste of your money.