I can buy the convenience aspect, as long as EQ profiles could be managed easily when switching HP's etc.Yes, i also use EqualizerAPO and Wavelet, but i think it would be much more convenient and with better sound quality to have the equalizer applied directly by the DAC.
Since both options would be done in the digital domain, presumably before volume control in the case of the 9038D hardware volume there would be no difference in sound quality except for differences in DSP implementation. 9038D doesn't have an additional DSP chip so the option isn't there because I don't see EQ listed as a DSP capability of the ES9038Q2M chip itself and I am pretty sure the usb bridge doesn't have support for it either. If it had one it would be as good as the implementation and many hardware DSP have limitations on sample rates and might resample everything down to let's say 48Khz (common for AVR's for example) but your mileage may differ. A pure software DSP on the other hand has less limitations in this regard as long as the cpu has the "horse power" to do the calculations and the software is well executed. Anyway, software is the option that exists and if the software implementation is good (no clipping introduced etc) could be just as good or better than a hardware implementation, it all depends though.