I'm happy to be corrected in any of this, but... I don't see the Note 2 as bad news. It should work right out of the box. Just need a USB OTG micro cable and a DAC. Don't need firmware mod, don't need USBAudioRecorderPRO The bad news was for Note 1. There is an outside chance Note 1 can work if you put BOTH cyanogenmod AND USBAudioRecorderPRO but nobody has tested that yet.
I have a Note 1 LOL
And I dont think I am gonna go and spend $700+ on a Note 2 just to have a portable DAC.