George - with an iPad the iPeng app is a must. It's way better than the Logitech app, and with an in-app purchase you can enable it (the iPad) to become another player on your network. Plug your headphones in, pour a beer, and relax in the garden . .
You said you're getting a DAC; another upgrade is a linear power supply. The Touch is the one SB device I don't have, so I can't give you first hand advice on how such upgrades will sound, but the original SB3 (aka Classic) and Receiver benefit from both.
The Touch can run as a standalone player with an attached USB drive, but if you install Squeezeserver on a suitable computer, you can get a wired or wireless network of players going around the house . . .
I'm sure Touch users here will give you more specific help.
Oh, there's always the Squeeze forum too.