Yes, the E17 is a DAC. I have never used it before though, so I can't say how well the bass EQ on it works. It also has a treble EQ but again, I can't really say anything about it.
It's up to you whether you want it or not, seeing as how it is fairly expensive for your budget, at ~$120. If the treble on the LP2s will really be that much of a problem for you and you didn't want to end up spending too much, you might just want to return it for something else. I haven't actually heard the LP2 or anything comparable that's over-ear though, so I can't really say!
Its really not even that its a problem so much, its just that I want more out of it. It's not really deal-breaking but im wondering if there isn't a pair of headphones out there for me that have the same bass with a better treble. Its not that it isn't there, its just that it seems hidden behind the bass when its going and barely survives, a tad bit muddy (but thats probably from the misfit earpads on my head)