AJZepp,
If your 950's bypass mode is similar to the 990's bypass mode, then you should realize a sound improvement gain using a higher quality digital source. I used to own a Channel Islands Audio external DAC which uses the top-line Burr-Brown (TI) DAC that I really liked and it made my ten year old Sony megachanger sing! Currently, I am using a Marantz DV-9600 which uses the top-line Cirrus Logic DAC and it also sings in two-channel. If I use my old Sony in stock form, it sounds life-less without some help. Even the built-in upsampler in the 990 helps my Sony tremendously. So I think whether you go external DAC or replace your digital source, you should hear a positive gain with your 950. What is your digital source that you are using currently for 2-channel redbook CDs?
Slbenz