I have long thought DSD is a great format. You can take that incredibly high sample-rate one-bit stream, filter it, and you have an analog waveform. Doing this with discrete components or FPGAs gives wonderful results in my experience.
In addition to a lot of nativedsd.com downloads, I have my entire vinyl collection ripped to DSD128 by a Korg pro unit. (No listener was able to reliably distinguish the recordings from the live vinyl, on a ~$20K analog setup.)
But, it turns out, DSD is largely dead as a format. It was never big, of course, but streaming killed it, as it can't be compressed.
I have now a PS DirectStream and Schiit Yggdrasil. Both are truly stupendous DA converters in their own right, both, IMHO within - say - "10%" of the best you can get at any price.
And I discovered this recently: Feeding my DSD128 files to the DirectStream natively, or allowing my Innuos server to convert them to FLAC and send them to the DAC - which then converts them to DSD as it does all input - results in only the most subtle differences.
So it doesn't really matter. DSD->PCM conversion is not lossless but it doesn't necessary sound worse either.
And then there's this: With PCM material, which is the vast amount of what is available today, including high-quality recording, the Schiit DAC has a naturalness of timbre and pace that takes the cake. IME.
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Aside: How cool is this? Schiit has a linestage preamp on Stereophile's Class A list. Preamps on that list go to $30K and beyond. The Schiit Freya+ price? $900!
Why would anyone spend $30,000 on a preamp?
Schiit is about the coolest firm in high-end audio, maybe ever.