With $500, the "best" option is a Cambridge Audio MXN10, it should fit all your requirements.
I took all my Apple Music, put it on an external disk, plugged that into my streamer.
For sound quality, you need Tidal, or Qobuz, playing direct on the streamer. It's a game changer from BT, and other services. It's like going to HD TV, once you start watching it, you can't go back.