What will a preamp do for me?


Missing in the chain below is a preamp - I use the DAC to control volume.  This is my only source and will be for some time.  What could I gain by adding a preamp?

I have Thiel CS 2.3s driven by a BAT VK-55, sourced by PS Audio PW DAC, with bridge II, mostly tidal.  The DAC serves as a preamp in terms of volume control.  Mostly Audioquest cables, amp power cord is Cardas Clear m, all fed by PS Audio upc-200.

I am am hoping to improve the highs, which sometimes sound smeared, too much sibilance; would like more air and clarity.  Loud rock sounds flatter, less dynamic than I’d like.  I am not willing to give up the deep detailed and beautifully resonant mids.  Willing to spend up to $3000, used is ok.  Totally balanced is a must.  Not currently willing to entertain the idea of different speakers - my goal is to make the 2.3s sound as good as reasonably possible before moving on to other speakers.  It’s easy to find a really good preamp in this price range, so much so I am almost paralyzed by the choices.  Aesthetix , Ayre, ARC, several BAT, Parasound and more all have apparently excellent models in my price range.  Patience would put Atma-sphere and PS Audio within reach.  Which is best for my situation?  There’s no way to audition all of these, how could I avoid getting on a preamp merry-go-round?  Or should I spend my money elsewhere?
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I too follow a "no preamp" preamp approach.  The issues you are having are commonly talked about on the forums.  I have come across the Townshend Allegri+ variable audio transformer.  Its the best volume control I have found.  Its totally natural, adds no coloration and has incredible resolution (Using Apogee Scintilla Ribbons).  Could not believe it when I went from an external Naim dac to the dac in my Naim NDX streamer with the Allegri+.  Soundstage much better, timber around each instrument, soundstage extends past the speakers on some music, sound is very dynamic.  I could not be happier.  The Allegri+ is in your stated budget.  I am going to try a single channel version of the same--with one input and one output, and no internal connections--with constrained layer damping.  Single purpose device with no compromises and has remote volume.  These devices inherently address the impedance match issue which is the root of most of the problems with passive approach. 
Why not mate a BAT preamp with your BAT VK-55? Seems like it would be a good fit.
I was in a similar situation last year, running the PS Audio Directstream DAC directly into my power amp.  It sounded good but not as good as I wished it did.  So I swallowed hard and bought their BHK signature preamp.  Sound is much improved, in just the ways you seem to be looking for.  I was able to get one for significantly less than list price from Upscale Audio -- pretty close to the price for a used one and to the top of your budget range.  You might give them a call and see what they are willing to do.  (On the other hand I am not in a position to say that this current model sounds drastically better than the used one you can get for a tenth the price. Haven't heard the 4.6.  Or the Schiit)
The entry-level setup works.  Adding better control signals moves you to the next level.  Rock On!

Could you bring your DAC over to a friend who has a preamp, to see if running your DAC at full volume eliminates the issues you hear at home, but running it below full volume adds it back in? That seems like a reasonable way to test if the volume control is having an impact on the sound quality.

Different preamps will have different impacts on the sound character when added to an existing audio chain.
Well the right preamplifier should increase the size of the sound stage making it more expansive creating a bigger sound. deHavilland uses big tubes in their preamplifiers which do just that. Many tube pre's use smaller little tubes, partially so they can put a cage over the top for cosmetic reasons. 
They will customize the pre so it will match the input levels for peak performance. Take a look.
"Count me in the crowd that likes to color the sound."

Ditto but I disagree with the general premise that direct even without bit stripping is the way to get the most "transparent and dynamic" way to get the source to the power amp. The outcome is completely system/component dependent. Also, in most DACs with a (digital) volume control, the bit stripping typically occurs at very low listening levels. 
I'd say be patient and get a Atma-Sphere MP-3.  Very accommodating  to for rolling tubes - you can tailor your sound to anything you like.
You might have to stretch your budget a wee bit for a used one, but you'd be happy if you did.
Nice recommendation for a Schiit Freya. Will try a such. To get into the tube sound and still be able to switch to a probably more neutral passive volume control. For your sound it may be a good idea to add some room compensation to your system like antimode 2.0 or similar. Cheaper than new speakers or a new room and can give very good results for your bass control and dynamics (from a flatter freq. curve).

George, 

Count me in the crowd that likes to color the sound. I've had the PS Audio Directstream,  Bricasti M1,  Jeff Rowland Aeris,  and Chord Dave. I tried all of them directly into my amp and preferred the sound with a preamp in every single case. 
Schiit Freya?  
Perfect, you have the choice of passive, tube, or solid state. And it has everything you need.
Still going direct without "bit stripping" is the most transparent/dynamic way of getting the source to the poweramp/s. Some people just don't like the sound of their source so they prefer to color it with a preamp.

Cheers George 
Thanks for the insight on why volume control from the DAC causes a weakness in the system.  Eventually I want to upgrade the PWD to the DSD, so that makes the stellar gain fell a non starter, unfortunately.  I will check out the 4.6 pre by ps audio, but I really want to stick with balanced, and so far I have not had much like finding a low cost totally balanced pre.  Schiit Freya?  
A DAC using a digital volume control will result in a worse SNR, which could effect dynamics. An analog pre-amp will keep the noise floor the same regardless of volume.

If just looking for an analog preamp, you don’t need to spend a lot.
The problem with volume on the DAC itself is that you're shortening word length. This is how the volume is controlled digitally.

My suggestion is to do what I did recently and try a PS Audio Stellar Gain Cell DAC that use a proprietary means to control gain on the preamp to control the volume of both and analog sections. I keeping it as it greatly improved everything I've thrown at it. You can try it for 30 days. Made in Boulder, CO.
Maybe the PS 4.6 would be more appealing if the price was $3995! Don't be fooled by the belief that "if it costs more it must be better"! That is a rabbit hole that too many have fallen into!
There's a one-owner PS Audio 4.6 preamp for sale now on EBay. $395.95 and free-shipping from PA. Seller is "buy-wrightjtt". This is an excellent sounding preamp, equal to units costing thousands! I have owned two of its predecessor - the model IV. A giant-killer, for sure! Why waste thousands? The PS 4.6 is not balanced, but you can use adapters.
A nice tube preamp mated to SS amp is the way I would go. When I have tried Dac volume control in the past I found it sterile and a bit harsh.