I do not believe that is true. USB provides the most options if connected to your DAC via USB.
Are you taking about streaming from a USB device? Or the capabilities of the USB connection to the DAC?
When I stream files from my hard drive server, they are mostly all WAV or FLAC files, so for me, a non issue.
WiFi streaming is capable of all the options if provided by the streaming service, except MQA if I remember correctly (but my DAC does not utilize MQA anyway). Also, as I use Mac/Apple, I WiFi stream with TIDAL Connect. I try to avoid AirPlay which has limitations.
My DAC is connected the iFi Stream via a USB.