A DAC is required when you have a digital source with low quality audio output (say, a laptop) or no audio output at all (a streamer, for example) AND an amplifier which only has audio input (a classic stereo amp, for example). Most DACs only accept stereo input data, and produce 2-channel (stereo) output - thus they are not really suitable for audio which has more than 2 channels.Sorry for my ignorance, I'm trying to follow along. Basically the E30 wont work for systems with a subwoofer, and I need to look for DACs that do? Or have I misunderstood?
An AVR, on the other hand, already has a multi channel DAC (6, 9 or even more channels) and can decode multi-channel source material. For more channels than 2, the best option is probably using your AVR's internal DAC. My AVR is a SR7200, and as I can tell, its DAC is not that bad at all