Redbook CDs are 16bit. Most of the current DACs upsamples to 24bits. So there are 8 bits for attenuation without lossing any bits when a Redbook CD or CD ripped file is played.
However, if you have a downloaded HiRes file starting at 24bit, then any attenuation via digital will lose information. i.e. you don't have the full 24bit resolution after attenuation.
This is the case for the Transporter. (read it from the slimdevice forum). I don't know how PS does it.
Let's hope that the 32bit DAC chips will become popular. Then we have 8 bits to play with when we play 24/192 files.
IMO for a DAC->amp combo (via analog volume control) to beat a DAC-pre-amp combo, it has to have superior power supply and ability to drive diffult loads in the analog section. There aren't too many DACs built that way. (may be the Theta Gen 8)