$5k is a nice budget for a 2ch system. Is this strictly 2ch? How large is your room and what type of music do you listen to mostly?
I'd normally say listen to speakers FIRST, and spend a good chunk of your budget there. Since you want a DAC1, that's $1k, so you're down to $4k for speakers and an amp/integrated. I'd probably suggest getting an integrated amp (a good one) and skip on the DAC1 pre. I think it would get you more options down the road.
The Gallo speakers run about $2k used. That leaves $2k for amplification. You need to make sure the amp is completely 4ohm friendly. An amp that is properly designed for the current between 4 & 8 ohm will double the output at 4 ohm. The Parasound is less than double. An example:
BAT VK-300x Integrated Amplifier
Regardless, I don't know how much speaker listening you have done, but I'd suggest you start there and then figure out what to do on amplification. I'd figure you want to spend about $2-$2.5k on the speakers and the rest on power. There are a lot of options in this range.
I won't get into the cable debate. I'm not a believer in high-end cables, but do suggest good quality cables. Blue Jeans is a good option and won't break the bank.