You are kind of at a crossroads here. By using the stereo inputs on your AVR you wont be getting the best SQ and at the same time will be making your DAC pointless, but you will have bass management. On the other hand, if you connect your DAC to the multi-ch analogue inputs you will have the best sound, letting your DAC do the work, but you won't have bass management. IMO, if music listening is something you care about you should look into a preamp with bass management like the Emotiva USP-1 or Parasound 2100.