I2S can be tapped off the DUET fairly easily. Hooking it into a DAC is where the problems occur. It is not a good idea to run over I2S 6". Too much noise will enter into the lines. The signal lines need to be very short with no breaks. If you plan to put the DUET circuit board inside the case with the DAC, this could be done.
You would then have problems with noise generated by the Wi-Fi board and the internal switchers in the DUET Receiver.
I think John Swenson did end up running I2S out of his DUET into a custom DAC. After many months of trying to get the wiring dressed correctly and dealing with the noise pick-up, he concluded it was not really worth it. The SP/DIF as good, after simple mods.