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It is and always has been about...

the reconstruction filter and the group delay; i.e. phase behavior of the DAC.

It isn't about the format, it's how the conversion to analog takes place. When a base PCM signal is transcoded to a very high-rate DSD signal, the out-of-band noise of the delta-sigma modulators is pushed far above the audio band and a very gentle reconstruction filter can be used with good phase response. It doesn't change the original recording, but it does change the way your ear perceives the reproduction of the signal. I'm currently transcoding everything to DSD 128 including low-bit rate internet streams and even broadcast FM and to my ears literally everything sounds better with the simple DSD FIR reconstruction filter in my dac versus just decoding the PCM directly.


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