I think an external DAC makes more sense. It gives you more flexibility in case you change transports (e.g if the laser dies) or want to add a streamer in the future.
A well-engineered DAC should be largely immune to jitter or at least have artifacts below the threshold of hearing, so there's no need for fancy / expensive cables. As an example, I can't tell the difference between music streamed from my Raspberry Pi 3 B+ via USB and the same track played from the Oppo UDP-203 via SPDIF coax with both hooked up to a Benchmark DAC3 B.