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The new experience is pretty nice and somewhat different, so that's another good reason to start fresh.
Yes Crimsomrider explained it well. Due to changes 2.0 brought it is recommended to start a new character. You can still play with your old save but expect bugs and glitches and stuff.
I'd say the DLC is fine to start as soon as it's unlocked - pacing and story-wise it makes sense; though I recommend doing it after most of the side quests and character questlines. There are points in the DLC main quest where you have time to go and do other things, so it meshes well.
I would still prioritise getting all of Act 2 completed before finishing the DLC though. Find those periods where you can take a hiatus from the DLC, and do some more MQ stuff.