I think two things are going on. First, Paul McGowen at PS Audio has always been a fan of using balanced cabling over single ended. Second, and probably the most important reason, is that the S300 is a fully balanced design. If you use RCA's, then the input has to be converted to a balanced signal first. Thus adding another layer to the circuit.
I currently have a S300 amp with the PS Audio Gain Cell preamp in a secondary system. When I got those two pieces, I did a comparison between using a balanced cable and RCA's (both were Audioquest Columbia's) and the balanced cable did sound better. Not by much, but it is tighter in the treble and midrange driving my Martin Logan electrostatics.
- Jeff