<<48/16. . . 96/24 etc>>

I agree with you there. But I think that is just the digital processor being able to interpret the digital signal. I think that the processor can't decode the 96/24 DTS signal, but that is just a design (and price) decision, I think. I don't think the DAC comes into play until very late in the game, i.e. right before being pre-amp'd to go out to the power amp. Up to that point, I've always assumed that the signal is completely digital, but interpreted differently by the processor.

You've got me thinking a bit more, though. I could be off base. I'll try to research it and pass along anything of interest I find.

S.