Bryan,
I really hate to disagree with you, but I have to make an exception this time.
> Why take the signal that's already been through a high end D/A converter from a good source and throw it back through another A/D, D/A step? <
The degradation caused by A/D/A conversions is greatly overstated, at least these days now that even really high quality stuff is so affordable. I'm not saying that all gear is equal, or that some cheap gear won't harm the audio, but I disagree with the notion that even one conversion must have an audible effect that should be avoided.
It's easy enough to tell for certain: Take the EQ device under test and set all the bands to flat. Now have
someone else hit the Bypass switch a few times while you listen without looking. Can you tell which is which, or even hear a difference?
> As for converting to XLR, I'd highly recommend an active unit vs. just making an adapter cable. <
An adapter cable by definition cannot harm the sound, assuming competent materials and construction. I would never use an active device when a simple adapter cable will suffice. Even more to the point:
> even a passive box that at least does impedance matching can still be had for < $100 <
Passive devices that match impedance do so with transformers. And even the best transformers have measurably higher distortion than even the cheapest A/D/A convertors. Transformers that are audibly transparent cost a lot of money!
--Ethan