Pros: Excellent sound quality, drives just about any headphone, plenty of input options
Cons: Some may find it too clinical and lacking in warmth
For the last few years I have used the older DAC1 HDR as my main DAC driving my Audeze XC headphones. The newer DAC2 HGC has been available for a while now and has been well reviewed. Other reviews have stated that the new DAC2 is like the old DAC1 only better, as I always liked my DAC1 I decided to upgrade.
There is a noticeable step up in sound quality over the older model. There is more detail giving extra space around the separate instruments; especially noticeable in the higher frequencies. The bass is firmer with more control and slam which really helps drive the song along and get your foot tapping to the beat.
The extra front panel indicators are nice if you have recordings at different sample rates as they give visual confirmation of what you are feed the DAC.
The only down side is that it is brutally honest in its rendition of the recording, some may find this too much. It is not kind to imperfect recordings showing them warts and all, not glossing over any imperfections.
Overall this is still one of the best DAC regardless of price you can buy. Additionally it has an great headphone amplifier built in which will drive awkward high end headphones with ease.