This is of interest to me since I also have a DEQX. (I'm not sure if the V2 is the "Super V" improved but if so I am considering building it as well, for fun, though I love my front horns.)
There is nothing at all wrong with running an external DAC with the DEQX. There are better DACs than its internal DAC. I plan to use my excellent Audio Note Kits DAC.
Now, of course, the objection is that you are then doing "unnecessary" AD and DA conversions. Here are my counters to that:
- Very high quality AD and DA can be very close to transparent, at 24/96. One thing I have learned from digitizing vinyl is that most digital nastiness comes from the recording & mastering. My digitized vinyl sounds extremely analog and close to the original at 24/96 even done on a rather humble Masterlink machine.
- The advantages the DEQX gives - linear-phase xovers, very steep slopes, time & phase correction (even correcting a single driver's phase errors), and room correction can well far exceed the slight disadvantage of the extra conversions.
At the 2006 RMAF the Cogent/Welborne room used a DEQX crossover with their vinyl source. I did not find out they used this digital crossover until years later and I was rather stunned, because that was the most realistic and amazing audio system I had ever heard. The palpability, nuance, detail, and emotion that came through, in a completely natural way, was actually literally jaw-dropping for me at the time. (Again, thinking it was pure analog.) This experience eliminated my theoretical rejection of digitization in an analog chain.
Furthermore, the DEQX actually has an advantage when used with an external DAC: with the analog inputs, all digital processing is done at 24/94, but using a digital in it is done at the input bitstream's rate - so, if you are playing redbook, the unit is doing everything at 44.1 Khz. It's easy to see how an external DAC could be superior at least for redbook.
For high-res files, I would counter that it is NOT true that less is always better. For example, I, like many others, discovered through much trial-and-error that a good active tube preamp almost always makes a system sound better, even when the gain is not necessary (the key word here is "good"). Same situation with a DAC: while less might be "closer to what was recorded" it might not be closer to what the original event actually sounded like or better-sounding.