Ha. Fed Google with "parasound 1500 dac" and one of the first results was a discussion of just this upgrade. Apparently what gets changed are the S/PDIF receiver chip (CS8412 --> CS8414, thus 24/96 support) and the digital filter (NPC SM5813 --> BB DF1704). Apparently the DF1704 gets set to slow roll-off mode by default (a touch rolled off at the upper end of the spectrum, but with better impulse reproduction in return). The DAC apparently already has PCM63P chips of best grade (K), these still look good on paper and with a good I/V and output stage and low-jitter master clock should also sound like it. The biggest gain is to be expected from the digital filter change.
Advantages of 24 bit? Hmm, mainly when playing back lossy material, or stuff you've recorded in 24 bit yourself (as to be recommended).
As for whether the upgrade is worth it over a new DAC (or something like a 1212m), hard to tell. If the Parasound gets "the rest" right, then I'd guess it is.