radix
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I already have a DAC. I'll do some digging on the OpenDRC-DI in the meantime.
Regarding the AVRs, I'll try to get some auditions
BTW, I visited a hifi audio shop - Seven Oaks. The sales dude wasn't very enthusiastic about using an AVR as a stereo amp. I also enquired about the NAD amp with Dirac. He says it's gonna be expensive - around £1400 (NAD 368 with bluesoundnode and DIRAC). In his opinion, Dirac most of the time messes the soundstage up and says "don't expect miracles".
I might try to book an audition tomorrow with Richersound, Sevenoaks and some others.
Let's see how it goes.
AVR amplifiers tend to have more noise than dedicated amps. See various reviews on ASR. But, they are still pretty great and the noise is usually below audible. They just are not super-fantastic like modern dedicated amps. If you have really high sensitivity speakers, maybe it's an issue?
The Denon & marantz that have DRC also have pre-amp out if you want to use external amps. Personally, I've not found it necessary.
hifi / home theater systems have tons of incremental improvements as you add and change pieces. It can be fun and such, but if you are on a budget (1000 GBP I think you said?), you should look at what gives the biggest value. Good speakers, DRC, most any amp/AVR, and a reasonable source. You can look at the amp and AVR reviews here. Any of them that are recommended will have a noise floor below audible.
I think there's a fair number of people on ASR that use an AVR system for combined hifi and ht.