Yes, you will be well served by outputting to a higher quality DAC when you use the Bluesound Node.
I have 2 Node's and output to a pair of Ayre Codex's.
The Ayre's are definitely higher resolution than the Node onboard DAC (which is no slouch for the money).
You can score a used Codex for a little over $1K.
Otherwise, I would consider a Schiit Gungnir or Yggy, both are under $1K used, and like the Ayre can be upgraded when upgrades are available.
Bob
I have 2 Node's and output to a pair of Ayre Codex's.
The Ayre's are definitely higher resolution than the Node onboard DAC (which is no slouch for the money).
You can score a used Codex for a little over $1K.
Otherwise, I would consider a Schiit Gungnir or Yggy, both are under $1K used, and like the Ayre can be upgraded when upgrades are available.
Bob