Replace PS Audio DLIII + Pass Preamp With Directstream Jr?

Matt, I suppose it comes down to a comparison between the somewhat old DLIII and the DAC in the DS Jr., and assuming that the digital domain volume control on the latter is transparent (truly no loss of resolution over its operating range.) I'd also lose a pair of interconnects - between DAC and preamp - which sounds good in principle.

Excellent observation, auxinput. I've done some searching here about opinions on driving a power amp directly from a DAC, and there seems to be somewhat less preference for that sound than when a good preamp is used between the DAC and power amp. So there is no clear consensus on this particular situation. I was hoping to hear from someone with firsthand experience with the Directstream Jr. driving an amp.
 
And cymbop, were you using the analog or digital (to a DAC) outputs of the SBT? The former are not so good and if that's what you were using it would not be surprising at all that you heard a big difference in going to the PWDII DAC.  

I have tried my DSJ connected directly to MC501 amps and felt the sound was "thin". Sound is definitely better with a pre in the loop,

Thanks for that comment. I was supposing I could replace my preamp and DLIII and get the DSJ with only a small additional cash outlay. It seems then I should be thinking about a lower-priced DAC (than the DSJ) with better dynamics and soundstaging than the DLIII. One that incorporates a network player, too. What is that DAC?