I used to be an audiophile, all into lossless, etc... then I did several a/b automated blind tests on myself, iPhone to Dacmagic, with my SR325i headphones, and I couldn't consistently pick the lossless tracks from the 256kbps mp3's. And my hearing is excellent, I can consistently hear 20kHz tones.
It's kind of eye opening. I used this app:
https://appsto.re/us/8p6iw.i
I just ran this test and I cant even hear the difference between 192kbps and lossless on the demo track... I use emu0404 dac and Beyerdynamic COP's. Music airplayed from air2. I guess im not a real audiophile
But im pretty sure i still can hear the difference between air2 output jack and emu0404 jack on the same source material. I still think the external dac is more easy for my ears at high volumes. It seems to be more smooth and more open soundstage. Ofcourse i will never know for sure without proper ABX test.