First of all, "audiophile" and "cheap" don't usually go together. I don't have anything near an audiophile setup, so I'm not going to really push that end of the spectrum. The Audioengine A5's have gotten a lot of good reviews here, and for typical "high end bedroom" listening should be fine (but try to review yourself first, if possible). As for upgraded DAC, I don't know that you can get much benefit there until you've spent significant $$ other places. The SB3 internal DAC is quite good, and should pair very well with the A5's. The nice thing about this setup is it's really good sound, with a simple elegance (as opposed to "big speakers" and "old JVC receiver"). Between your FLAC collection, music services available (pandora, etc.), you get a lot of versatility, and all you see is the little SB3 and a couple of speakers.
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