I'm not 100% sure what your question actually is here Paul?
Looks like you're completely good to go to me & have a nice enough system IMV......right through the chain I'd say......although I'm not a huge B&W speakers fan I quite like yours & think they're a fairly classy set of monitors. The SBT + a decent Dac makes for a very high quality digital source I used to run one in my main system & still have one in my bedroom system, pending a move to my Dads setup.
Ripping to Flac is exactly what you should be doing for best quality, so not at all overkill:nup:......all the 'Lossless' formats are much of a muchness in terms of SQ, but Flac is far superior to WAV fer tagging.
Re Hi Rez.......Funnily enough I was taking a squiz of a review of your Dac t'other day due to t' 'Billy Bargain' one that went on here t'other day.......was that you that got it BTW??
IIRC it has switchable upsampling at 96khz & 192khz.....so I'd be surprised if the receiver chip can't handle 24bit high rez & if it does (best check t' specs:^) I doubt you'd need to upgrade to a more modern Dac to enjoy any benefits of 'Hi-Rez' material. :stereo:
ATB
C.