It's really frustrating. I use my phone to listen to music at work, and while I'm far from being an audiophile, things like a tinny high end are still annoying. Where Apple has spent so much time marketing to creatives, you'd think they would pay more attention to something like this. My impression, though, is that they're so caught up with the cash cow that is AirPods and wireless Beats headphones that they just don't care anymore.
In any case, thanks for sharing. These test results are definitely reassuring.
It may be that you’re used to hearing certain artefacts from other sources (eg you get totally different harmonics near the upper limit of a valve amp compared to a solid state one), or that the headphones could not be driven at a sufficiently high voltage. But the dac in the dongle is either the same as or better than all the dacs in iPhones with 3.5mm jacks so having a headphone jack wouldn’t help there.
Yes, I'd be leaning towards trading my SE in for this except for the headphone jack which I use a lot. Now I'll have to wait and see if iOS 14 supports my phone.
Otherwise this looks like a solid improvement. $400 is the north end of what I'm willing to pay before I look at refurbs and last year's model.