Hi James!
This is highly interesting!
I think DSD is something of a sales tactics more than anything alse for manufacturers at this point. Considering how much DSD material there is out there, that certainly seems to be the case. Change of situation where music would be mastered for DSD instead of PCM is unlikely and as long as this is the case, DSD cannot outweigh PCM in terms of sales. Also, SACDs often don't sound nearly as good as they should and that is the consequence of industry's own unpreparedness. DSD files are smaller than equivalent PCM files so that might be an advantage in this day any age where everything is downloaded from the internet. Still, internet bandwidth and disk space are no longer a problem so even that advantage is no longer crucial. To conclude, having a DSD-capable DAC is therefore more of a compatibility thing than anything else - making sure the customer is able to play the file.
Based on that conclusion, your BDP range is a powerful one. It is a computer and I have no doubt it is capable of processing DSD in such a way where the signal output through it's S/PDIF interface would be PCM. That would seem to be the most effective way of preserving compatibility.
Now, from everything I have gathered from Chris this last couple of months, DSD is possible only via USB connection since Sony/Philips protocol doesn't support it. In that case, DSD output through the BDP's USB interface is processed by the main CPU and software decoders of your BDP. Computers are a tricky business so hardware decoding is usually more reliable than software decoding. In other words, your Envy24-equipped sound card is possibly more reliable than using software decoders powered by your BDP's main CPU.
This means the following - you should not exclude the possibility of having DSD processed to PCM and then output via standard S/PDIF interface in favour of having direct DSD output through the USB output. DAC still has to process that digital signal and I am not convinced that USB input sounds better than a S/PDIF input. Not even on some ridiculously expensive DACs.
So you would have to weight everything and decide according to criteria of reliability and audio quality.
If you would consider converting DSD to PCM on the BDP first, then one of the advantages is certainly compatibility for the days to come. Since BDP is essentially an open architecture system which functionality is dependent on software, perhaps it would be less costly to do so than invest time in research into new D/A hardware when it becomes available or design modular DAC systems which by definition, are never as trouble-free or as affordable as manufacturers are promising. This approach would also leave more signal processing on BDP's shoulders rather than having to have your BDA process USB stream.
At least, these are my thoughts.
Cheers!
Antun