I'm using the Pico with AKG-701's. I have to tell you that in my opinion it sounds significantly better with the DAC setup rather than using the amp section in portable mode. That being said, based on what I've read it seems that a good desktop amp/dac combo should beat the above mentioned setup. I'm ordering a Gilmore Lite with Justin's new Pico/Dac only. I'm optimistic that I'll see some noticable improvement.
Good Luck
Good Luck