I've asked myself the same question. In my case I've eliminated the switch, run my router with lps to eliminate back feed noise. Wish someone made an audiophile router, would eliminate need for switch assuming router has enough internet outs. And, it would be nice to eliminate router altogether, unfortunately, my streaming solution requires wifi.
Still, I continue to ask myself if there would be improvement with switch, even after doing optical conversion, therefore, already galvanically isolated post optical conversion.
And so the choice for me as I see it. Router>server>optical conversion>usb renderer (what I presently have), router>switch>server>optical conversion>usb renderer (this way I've isolated internet feed to server from noisy router), then I could go all out, router>switch>optical conversion>server>optical conversion>usb renderer. I can understand how all this extra isolation could be worthwhile, on the other hand more boxes, wire, further from straight wire concept. Junia, as I mentioned in your other thread, you never know until you try.
These are the questions that make optimizing diy streaming solutions an entirely subjective experience. There are theoreticals and there is personal experience, what takes precedent?