Eastein, we are getting warmer?!
However, your suggestion seems to work only with
1) iPad and iPad mini? and
2) Powered DAC or powered USB hub?
In any case, it seems this would work with say, an iPad mini into a USB ready DAC such as a Benchmark?
Then, we would only be missing the best protocol for iTunes music files - Apple lossless?
Again, I am actually not an Apple person, but trying to figure this out as I evangelize to friends and relatives so thanks to everyone for ideas.