Hi Howie,
The MSB DAC is an amazing DAC no doubt, but you must understand that the R2R section on the MSB DAC, like all R2R DAC's is for PCM only. When you send DSD to the DAC, it's using the DSD section of the DAC. The R2R section isn't being utilized at all. So if you are using the MSB DAC with HQplayer to resample PCM to DSD, that DAC is definitely overkill for the application. You aren't using their R2R section or even the filters in their Sharc DSP chip anymore when using HQplayer. However they do use excellent clocks and have an excellent DSD section, along with well implemented USB interface.
The Merging DAC's use a single Sabre 9008 chip. This chip is an 8 channel chip. In the Hapi/Horus, it's only possible to use each channel separately. There's no internal summing of the channels to improve dynamic range. On the NADAC, the 2 channel version sums all 8 channels to 2 channels internally to improve dynamic range. So this does offer some level of improvement over the 8 channel versions of the the Hapi/Horus and NADAC. However, some folks have built an external summing device to sum all 8 channels to 2 with the Horus/Hapi to achieve the same thing as the 2 channel NADAC does internally.
With any DAC that uses the Sabre chip, it's impossible to completely bypass the multibit SDM section of this chip. HQplayer can allow bypassing of the oversampling filter section, and the modulation, but not the multibit conversion. In my practice, I've found that DAC chips that have the DSDbypass mode sound better with HQplayer using this mode, vs using the mode that passes through the internal SDM/SRC section like the Sabre forces you to only pass through. But this is not saying that a DAC that allows this bypass is going to automatically be the superior DAC. There's much more to the total package than how things are handled in the chip. However if your DAC does have this feature, using it in combination with HQplayer will offer the best performance.
As far as recommending a good DAC. I think you already have a great DAC for the task. It may be overkill for DSD only purposes, but likely handles DSD very well.
Appreciate the answer. Thanks so much