It actually makes no sense to me why a DAC would be any different than a computer image reader, other than how much mysticism surrounds audio. You need good resolution and bit depth, with no loss of information in between. I can see how in the past this wasn't perfected yet, but how on earth would a $100 DAC these days not do this task perfectly? I wouldn't even be confident these would greatly outperform many on board motherboard sound devices, other than the extra system noise introduced.
Do you also pay for expensive custom image readers for your computing enjoyment?
I think you may not be considering all a DAC does. Its not an amp - which simply steps up a signal.
Mystical? I don't believe in differences in power cords, speaker wires (except for some esoteric panel speaker), balanced interconnects, SE interconnects (outside of env factors). I do believe in altering rooms with products like ASC traps, headphone mods including stock HFM wires -> better ones (include DIY), parametric EQ (but not following the under 100 Hz advice of the new headphone measurement giants (ill considered rubbish). Non parametric EQ's under 20 bands per channel are virtually useless. So a guy with 44 yrs in the hobby - somewhere between subjective and objective.
Custom Image Reader? I pay extra for my single malt (Oban), and my Barolo, I don't pay extra for equipment colors, or the reader.
Factors to consider in why DAC's are more complex than a reader or an amp.
* Resolution - you got that one
* Non-linearity
*Settling time - slew & ring time
*different chips - there are hundreds of chips (1356 16-bit or better now at mouser) used by DAC makers - why not use just one? Why not look up all the specs - lots of differences. Why? Maybe consumers are easily fooled - but manufacturers? Note there are 14 20 bit chips at Mouser - one costs $151k, many others in the $4-8k area - geez... why?
*what about the supporting circuitry & power supplies? Different specs/grades - and yet you believe they make no difference. Is your belief theoretical or practical?
The MB dac in the Lyr3 is nothing like the MB dac - Gungnir - Heard it blind AB'd, took all of 3 seconds to distinguish them, every time. The Lyr3 is a nice deal - the MB is good enough at that level. Schiit doesn't believe in or sell fancy power cords or interconnect cables - yet they supply different DACs at different prices. Yggy considered for years the cheapest "perfect" DAC, the Gungnir 1 bit less, almost as good (subjectively some prefer it) to the Yggy.