Well, I found the attenuator that came with the earphones.
This really helps and I don't have to turn it down that much to get rid of the hiss. I don't mind having to use this at all.
So, with the attenuator, I started A/B-ing the Dragonfly and DSD nano. The Dragonfly actually has less initial hiss, but the Nano definitely is the better DAC.
However, I said I was having driver issues with the Nano that was causing a weird delay effect. Actually it is happening on both devices, but it didn't start happening until after I installed the driver for the DSD nano.
It doesn't happen all the time at 96 KHz, but it does happen at the same parts of certain songs on both devices. It just happens much, much more often and really stands out when set to 192 KHz.
Also, I read some reviews about the Audioengine D3, particularly the one over at headfi, where they compare this with the Dragonfly. I agree completely with what the say about the Dragonfly, and I liked what they had to say about bass performance from the D3, and also it is supposed to have the SNR over 110 dB as you guys mentioned should be a minimum, so I also ordered that, and that should be here tomorrow for me to continue comparing.
However, this weird delay problem has got to be fixed, or otherwise, there really isn't much point in having any kind of external, dedicated device.
I will play some more with it to see if it is isolated to JRiver or not, and then if the problem is reproduced on my laptop.