>>Can the BDA-1 (or any other DAC's currently on the market) handle/output true high-resolution, or simply upconvert up to 192K? This is ultimately what we want, correct?<<
This is my opinion based on the BCD-1, any recording is going to be improved significantly. MP3's will sound better, but you cannot replace information that was lost. It will not have the detail of the original recorded wave. 320 mp3 for example played through BCD-1 sounds significantly better than a cd played through a conventional cd player. 128 will sound better but the details of instruments that's on the original recording wave is noticeably absent with critical listening.
This leads to the question, what is the benchmark for true high resolution? On my system the benchmark is either sacd or dts played through my Sony NS9100ES.
With sacd the presentation is warm, detailed, smooth and the bass has depth and weight. You can really feel the vibes! I can crank the volume to max and it won't clip the amp because of wave distortion. It will clip the amp because it's run out of clean power.
With Dts my best recording, Porcupine Tree- Arriving Somewhere.
The resolution is sooo good that you hear as well as feel the harmonics of the bass guitar. I've been to the bar and listened to the bass guitar and this is the format that comes closest to capturing those harmonics. It's not perfect but pretty darn close. As well the resolution is so detailed that although I was not clipping my amp the extra detail over worked and over heated my Studio 20 monitor speaker frying something.
DTS the highs are sharp,smooth and the presentation forward and detailed. The bass does not carry the weight of sacd but is more articulate.
Which is better dts or sacd? IMO it's a preference. I prefer dts, because to my ears it's more live like. When listening to sacd for a few hours I felt fatigued and needed to switch back to the BCD-1.
With the BCD-1 a good recording is elevated to that of dts ballpark. It doesn't convey the same degree of harmonics. However being that the medium is from a 16 bit cd recording, this resolution is outstanding.
As well with the BCD-1 I have taken recordings like In-a-gadda-da-vida through a 3-step process to restore the recording to very high resolution of dts. If wish you could hear the results of this, you'd be blown away.
This same manipulation of a wave can be done with the BDA-1. Only it would be a 2-step process. Making it much more practical for restoring poor resolution recordings.
If there is a drawback, it would be the forward presentation of the music which is very similar to dts. However this may be more due to my components such as monitor speakers or near field listening or lively room. So I urge people to audition the BDA-1 and listen for yourself.
