You are not a minority in using an external DAC. Linn Akurate DS (the new version) has S/PDIF (BNC) digital output. There is an option to completely bypass the upsampling within Linn DS and just extract raw digital music data and feed to your DAC (do the upsampling at the external DAC). Or, you can setup the DS to output fixed sample rate of 88/96kHz as one option or fixed sample of 176/192kHz as another option.
I am currently feeding the 'raw' output from Akurate DS and upsampling it using an external DAC and getting phenomonal results. All my music is in FLAC format in a NAS - I am using Linn's (very user friendly) Kinsky control software to stream data via TwonkyMedia server (laptop, iPhone, iPad etc. to control the DS).
Akurate is a more expensive option than Linn Majik DS or Sneaky. But I think the Majik and Sneaky come with S/PDIF (RCA) co-axial version and I prefered the BNC since it sounded better than RCA. Unfortunantely, Linn does not manufacture DS units with AES/EBU digital output or a streamer only unit (without a built-in DAC). Hope this info helps...