surfgeorge
Member of the Trade: 3D Printed Accessory Designer
You hit the good enough wall quick with DACs, it’s relatively cheap now days to build a good one. The main limitation is actually our hearing. So once you have something your happy with I would argue headphones are where the money should be spent hardware wise as long as the amp is properly powering them.
I don't know where the "good enough" price level is for you, since "cheap" has a very different meaning for different people.
When I built my stereo system the rule of thumb in high end was to split the budget to 1/3 source, 1/3 amplification and 1/3 speakers.
For me personally, the $500 Mojo is a good investment for any speaker or IEM from $250 to $1000 and even above.
So if $500 is in the cheap territory I fully agree. I had cheaper DACs but did not find them anywhere close to the Mojo, or even a very good investement.
Even my $1200 Sony ZX2 DAP is arguably not better, it's different and I prefer the Mojo.
Bottomline is that the DAC plays a big role in musical enjoyment IMO, and you are absolutely right - amazing performance can be had for relatively little money today.
Cheers!