Generally speaking, I completely agree with you. That said, there are a few potential benefits to an integrated DAC - for example: Less initial up-front cost if one doesn't already own a DAC, a smaller footprint, the ability to use the combo as a secondary listening device in another room, a simpler entry point in to head-fi if one doesn't already own a DAC. Obviously a major downside is that integrated DAC's are generally not great performers. For example, the integrated in my WA7 is about on par with the Audioquest Dragonfly. The Gungnir is in a different league, no question or dispute there.
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