3. No. You need a computer, NUC, Nucleus or x86 NAS for that.
SQ: the simple answer is no. Longer answer: If you use Roon, you get the option to use Roon DSP to upsample PCM to DSD64, instead of the Lumin built-in algorithm for optional DSD upsampling. With Roon you can do DSP for room correction and volume leveling as well.