Rich, I generally keep the Oracle DAC in bypass mode rather than having it upsample. When I'm playing hi-res via the SB Touch (24/96), the upsampling "may" sound better, but not always. Overall, I've been happiest just leaving it on bypass.
When I'm playing Pandora or other Internet streaming, it's generally just for background music so I'm generally good with however it sounds. But as with most things, I find the quality of the stream far more dependent upon the recording being played than with the stream resolution. But yes, there are also times when I just need to switch from Internet streaming to my own recordings because the sounds just gets grating.