Better DACs provide better low level details. There’s better focus and layering but the images in the soundstage always grow bigger as volume goes up. As to timbre and tone, it is definitely more refined with the higher end DACs. Some of the more affordable DACs mask the artificial tone better than others by backing off those frequencies masking the digital nastiness by trying to sound darker or warmer. Some manage to be really good at this. But that’s generally the compromise you’ll be dealing with.
@knownothing streaming can be really good and can sound as natural as CDs or CD rips. Ethernet cables on good streaming equipment in a resolving system can make a nice difference. It all depends on source material and your components. This is based on my experience.