I started with a rudimentary PC audio rig about 7-8 years ago at first using a Creative Labs external USB DAC, which allowed me to hook my computer up to my stereo as it had both SPDIF and RCA outputs. I still have this somewhere if I look hard enough, but the gains were very minimal in comparison to just running a 3.5MM-RCA cable from the headphone jack. I then ran the SPDIF out with a repeater to my stereo rig and my Sony EP9ES "DAC". It was about 20' away from my computer along with a VGA cable ran to my projector so I could watch movies that I cue'd up on my computer. This was before the days of Netflix and digital streaming and I played a lot of DVD's on my computer at the time mostly because my projector accepted VGA and made this simpler for me. I later went to an Acoustic Alchemy DDE for it's i2s interface, and the sound improved, then went to a server based system with a Escient Fireball and a 400-disk DVD player, and finally to a Popcorn Hour.
Over time I realized that saving DVD's to a hard-drive for playback was just too time consuming and not worth the effort for the limited number I had and mainly the sheer cost of DVD's dropping so drastically (and the cost of the Hard-drives at the time), but I continued with archiving my CDs onto my hard drive, and at the same time upgraded my monitor, the video card, my PC's power supply to an excellent and hardly recognized or acknowledged Audiotrak Prodigy HD2. I upgraded to the latest op-amps on the output side (do not recall exact model #), which made a LOT of difference. My monitoring speakers then were JBL L36's.. and I got a Behringer A/D/A connected via USB (model # alludes me too) to allow me to connect my turntable to my PC to rip my vinyl for archival. (Again I'm speaking of what I was up to over 7 years ago!) And not much has significantly changed in terms of sonics, at least in my experience.
I've been at this for awhile now, and USB, while convenient, has always caused me fits to a certain extent. The moment I went to the TeraLink to decouple my PC from my DAC, is when everything changed for me. I experienced similar results with a Dlink wireless receiver (model # escapes me currently), as well as the Squeezebox Duet. There were no more drop outs, none of the noise that always seemed to bleed through was there, and the resultant sound reminded me of what I was hearing on my dedicated CDP. I won't cover all the CDPs I've heard or went through as that's not what this thread is all about.
I have, however, been trying out and testing MANY new DAC's with USB and Hi-rez capability, and the DAC I was using for awhile with my MacMini, the dBlabs Tranquility totally turned ALL these ideas of higher resolution in it's head, it's a 16/44.1 NOS DAC... I've since graduated and tried many others, old and new, especially now that I have the Teralink. Have had some friends bring over their DACs to test/compare etc. And I feel I'm getting lost in the "endless sea of DACs".. wading through them has been really telling of the market share that is happening. 7-8 years ago there were maybe 20-30 "go to's" to consider. Now there are literally hundreds.
I will put it simply, every time I have had the chance to test a DAC that has both USB and Toslink/Coaxial inputs, the Toslink/Coaxial has won out when connected to my PC or Mac Mini or whatever the case may be with the Teralink in between. Yes, this does limit me to 24/96, but I simply have not felt the need, or have the need for anything higher resolution than this.
I agree that it's great for the mastering process to use these higher resolutions and DSD, but I simply cannot agree that it translates to better sound on the playback side, unless it's already captured on the source material. I would have zero concerns about sound quality for a track mastered in this way and "down-sampled" to 24/96. I know this term by itself makes most people cringe, but there is nothing at all wrong with dropping off bits when the files are as large as DSD files. And while we're discussing, DSD is a transmission protocol, not a "source file", but it's being labeled as such. Again, more confusion abounds and it's making my head spin.
No, I really don't know where the future is heading with all of this, and just trying to gain some stable footing when selecting which DAC to try next, if any.
If you all knew what DAC I am going to be using shortly, you would question my evaluation process, but will easily compare to anything and everything available and it's about 15 years old. This very statement may lend itself to down-playing my credibility, but it's why I posted the statement I keep hearing over and over when talking to people about DACs.
"DAC technology is changing so rapidly that it's too hard to keep up, and it's pointless to own the latest and greatest when something new is already in the works"
The perception is seemingly that the latest and greatest always trumps anything else that came before it.