I’m not knowledgeable at all, but I suspect there would be a DAC I could buy that’d make my iPhone sound just as good. Am I way off base?
You might want an external amp for high impedance headphones for electrical compatibility reasons, but an amp and DAC are not the same thing.
Maybe for a MP3 player it does not matter, but in general the physics behind balanced analog audio is quite sound (pardon the pun). It is a simple trick that provides better resistance to interference.
Every XLR cable on the floor at a show is balanced and it is not because the sound guy fell for audiophile marketing, it is because it works and costs next to nothing.
It does have one theoretical advantage - the maximum voltage from a battery powered device can be higher which might be useful for a very high impedance headphone if they're too quiet.