Arduino as a digital pot/matrix mixer etc

ok, so i'm thinking:
Maybe i should use normal multiplexing on the input side with a 74HC4067.

Then use a dac on the output side, via demultiplexing, only for the pure DC voltages, and then use digital pots for the ac voltages? Can i just use the built in one, and then demultiplex it?

Is this a stupid way to go? Complex? More expensive?

Im aiming for easy and cheap:)

Ideally, i would like high resolution in steps on the in/output side, say 1024.

Anyone could point me to a dac i can use/coding/thoughts etc?

Thanks:)