I'm not specifically disputing anything you said, but I think there are a few things that do need clarification about the technology itself.... they're not in a specific order....
1) The
VAST majority of music is
NOT mastered in DSD. The main reason for this is that the DSD format - whatever its other benefits or drawbacks - is not at all friendly to most of the types of processing normally used when mastering music. Basically, recording in DSD is the equivalent of recording "direct to disc" in vinyl; DSD recordings cannot be multitracked, mixed, or even have the individual tracks faded in and out; in fact it's darned near impossible to edit in DSD at all. (Until a few years ago this was 100% true; there are now a few recording consoles that can handle basic editing in DSD -
VERY basic editing. However, most studios don't have one.) This means that a lot of SACDs were in fact
NOT recorded in DSD. They were simply encoded in DSD from an analog master tape, or perhaps converted from a high-res digital PCM master into DSD. And, if something that wasn't originally recorded in DSD "sounds better in DSD", then it's because you prefer the mastering that was done when the SACD was produced (which is not to say that the difference isn't real or significant).
2) In terms of bandwidth, frequency response, and any other specific parameter you care to talk about, single-rate DSD (which is what SACDs are recorded in) is approximately equivalent to 24/88k PCM (or the more standard 24/96k PCM). Beyond that, it is pretty much a "different but equal" format. (But, yes, it does have some areas where it is, at least arguably, better than Red Book CD.) Weiss, who makes probably the best (and the most expensive) software used to convert between DSD and PCM (Saracon) has a short succinct white paper on the subject - and their conclusion is that DSD is more difficult to use, has several drawbacks in terms of flexibility, and has no technical advantages over 24/96k PCM, "but if customers want it then you should provide it to them". (I'm too lazy to dig it out again - but you can find it by Googling "Weiss DSD White Paper".
3) Going back to item #1, the very fact that DSD discourages editing, and so tends to encourage "more pure, less edited, simpler recordings" may in fact count as a benefit in the overall mastering process. (But this would also suggest that a PCM recording mastered the same way would sound no different; the benefit being that DSD prevents the excessive "fiddling around" common when music is mastered using standard PCM editing software.)
4) The data formats used by PCM and DSD are
NOT directly interchangeable. This means that it is impossible to convert from DSD to PCM, or from PCM to DSD, without altering the content at least slightly. Setting aside any arguments about whether the differences are or are not audible, this means that it is impossible to directly compare "a DSD version and a PCM version" of anything, notice a difference, and then authoritatively declare that the difference exists
BECAUSE of the difference between the formats. If you hear a difference you will
NEVER know for sure if it's because one or the other is really "better" or if it's because you're hearing some slight artifact of the conversion process itself. Likewise, if something is mastered in DSD, then converted to a CD, the conversion process will slightly alter the sound, which is going to make it impossible to know for sure what the actual cause of the difference is.
5) I will personally state that, although I haven't actually tried the experiment under carefully controlled conditions, under casual conditions I don't notice any difference between DSD coming from an Oppo and that same DSD after being converted to 88k PCM by the same player, when both are fed to an XMC-1. However, I
HAVE had the opportunity to carefully compare the results of converting the same DSD file into 24/96k PCM using two top studio format converters (Weiss Saracon and Korg Audiogate), and the differences between those two 96k PCM files were in fact (very slightly) audible - although I wouldn't bet on which was actually better. Therefore, I don't doubt that there might be some slight audible difference caused by the conversion process inside the Oppo. (I know for a fact that a difference will exist; the only question is whether it will be audible or not. I'm also quite certain that Dirac will make a much bigger and more clearly audible difference.)
This is why I asked the double question..... "Can you hear a difference at all?" and "If so, is it really in favor of DSD?"
After all, if you don't hear the difference, or if you don't think DSD is obviously better, then this is all a lot of "storm and fury signifying nothing".
6) HOWEVER, all that said, I still agree that choice is a good thing... which is why we included the ability to play DSD directly in the XMC-1.... and, obviously, it should work.
Now, as for the famous (infamous?) DSD thump thing.....
The Oppo players have a slight flaw in the way they switch their output when changing between DSD and PCM, and it is this flaw that caused "the original thump" (and doesn't
THAT sound biblical)
. There was a "fix" in earlier versions of the XMC-1's firmware that helped us to prevent that little flaw from making its way to the output... and so no thump. That fix was accidentally omitted in one version of the firmware - and so the thump returned. That fix has now been reinstated, and so the original "DSD thump" is now again gone, and that
particular situation should be back to its original happy state. This is why so many people have reported to confirm that the thump is in fact gone.
The current "situation" is that a few people are now experiencing a thump or noise when other switching events occur while they're playing something in DSD. We are looking into this, and we do expect to find a solution for it, but it is in fact a
DIFFERENT issue.
There, now everything that needs to be said
HAS been said.....
We are doing our best to find and fix this new thing....
However, because the XMC-1 is in fact an immensely complex device, the best I can promise is that we'll do our best to do so.
Sadly, the XMC-1 may not succeed in becoming the first-ever device of this complexity to achieve absolute perfection.... but we are trying.
So lets everybody STOP FIGHTING ABOUT IT.... OK?
Downsampling from DSD to 16/44.1 is almost always deleterious to the music. The CD is mastered from the original recording (DSD) and the drop in SQ is due to the reduced bits and SR. DSD to PCM is not the problem, per se. My Oppo outputs 88kHz for SACD, and it still sounds great. I agree, being able to use RC trumps the advantage of DSD direct...but
choice is still a good thing.
. Go back and delete my posts? I don't think so I'll leave them there. Just another post from you trying to tell another member what they should do. I'm sure the posts will be deleted anyhow.
. There was a "fix" in earlier versions of the XMC-1's firmware that helped us to prevent that little flaw from making its way to the output... and so no thump. That fix was accidentally omitted in one version of the firmware - and so the thump returned. That fix has now been reinstated, and so the original "DSD thump" is now again gone, and that particular situation should be back to its original happy state. This is why so many people have reported to confirm that the thump is in fact gone. 
