Is it akin to what a good phono stage can do for a cartridge?
Yes that’s very close. It’s much less about the chip or any other circuit that does the conversion from digital to analog. Like the phono pre or a preamplifier or an amplifier it’s mostly about the power supply and the analog circuits. As in a pre, or the others, these can be very elaborate (and expensive) or very cheap (and cheap). There are no bounds on what these can cost. Then there are the cases that can cost more than the components within. You must, yourself, draw the line and perhaps seek out the bargains, that is, find the best value for yourself.