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That might be true if you ignore the existence of Class D amps and efficient power supplies, you can easily get around 2 watts of output over USB 2 and with USB 3 you can technically get a 200w input power.
Having thought a bit, what I'm after initially is more of a desktop DAC, with line out jacks, and inputs for USB, optical and coaxial digital, which will be always wired into my hi-fi, and won't be required to do the portable dac thing. Cambridge Audio Dacmagic 100 is a contender (but I wish they'd do a sale price, the current £169 seems a tad steep to me). But there are also interesting options from China being sold on ebay/amazon/aliexpress and the like, such as:
https://www.aliexpress.com/item/TOPPING-D30-DSD-Audio-Decoder-USB-Coaxial-Optical-Fiber-XMOS-CS4398-24Bit-192KHz/32732737004.html?src=google&albslr=200349805&src=google&albch=shopping&acnt=494-037-6276&isdl=y&albcp=658432961&albag=33762888219&slnk=&trgt=68416666751&plac=&crea=en32732737004&netw=g&device=c&mtctp=&albbt=Google_7_shopping&aff_platform=google&gclid=EAIaIQobChMIlrrS176P3QIV1rjACh0GqQBlEAQYBCABEgLE4_D_BwE&gclsrc=aw.ds
https://www.ebay.co.uk/itm/DAC-X6-Headphone-Amplifier-DAC-Decoder-HiFi-USB-24Bit-192Khz-Fiber-Coaxial/263522781172?hash=item3d5b2e87f4:g:NIkAAOSwdqRalkzN
https://www.amazon.co.uk/dp/B06X92M8MS/ref=asc_df_B06X92M8MS55171386/?tag=googshopuk-21&creative=22146&creativeASIN=B06X92M8MS&linkCode=df0&hvadid=205215094696&hvpos=1o1&hvnetw=g&hvrand=15240979636758525106&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9044880&hvtargid=pla-431243607253
...just to highlight three examples that seem well reviewed online/on Youtube. Quite tempted - has anyone tried any of these brands i.e. Topping/FX Audio/SMSL?
It's certainly possible to make a USB-powered DAC that sounds rubbish, but that's not down to a lack of power. A quick Google suggests that most earphones and headphones are in the 80-125 dBSPL/mW range, ie 1 milliwatt results in 80-125dB SPL.
80 dB SPL might not be loud enough for some people, but we're putting up to a thousand times that much power in. Even if the DAC itself takes up 1.5W you've still got about 400mW per side to drive the 'phones - ie you can still hit permanent hearing damage levels.
I never tried this myself so cannot offer an opinion one way or the other, but there is the view in some hi-fi circles that sound quality is improved by using an external PSU to power USB devices. This requires the breaking of the power line from the computer in the USB cable, and connecting up the external PSU to power the device. Check out www.tnt-audio.com for DIY examples/advice on how to do this simple modification.
Nil Satis Nisi Optimum
The FX Audio is super cheap, and nicely made, but I didn't fancy ordering from China (or outside the UK) and I read things that lead me to believe the sound would not be quite up to either of the other options, plus I don't need the headphone jack for use with the hi-fi. Another thing, if I have it correct, is it doesn't do ASIO, only WASAPI - which apparently isn't as good.
The Topping D30 looks pretty great for the money - can find them for under £90. But again the ordering from China. Possibly a better sound than the Cambridge Audio, but I also read accounts from some people who prefer the CA. Just possibly some issues with the windows driver for the Topping also (did read the odd report of issues). Also, I like the leds showing sample rate on the CA - I think that will be re-assuring.
And having kept the spend for the desktop DAC down to £100, I just went and bought an as-new Cambridge Audio dacmagic XS (version 2) for £57 posted, so I'll have the portable headphones thing sorted also . Again ebay (seller had several for sale, all box-opened for photograph purposes, but unused) - hope this one works out also.
Fingers crossed, wish me luck I guess...
Good luck with your setup, you've probabally already noticed that the music equipment game is a never-ending quest for perfection