LA mitchell:
I don't think there is a definitive answer to your question because the implementation of a digital solution has way too many variables to be able to judge the entire solution by one component or link. Vintage hardware can be very good - as good or better than 90% of what is being used currently to serve up music. Therefore, IMHO, there is probably a way to create a digital music solution in YOUR system (effectively addressing timing and jitter issues) where a $750 DAC improvement can be perceived as "better" than the less expensive DAC. For me, my amplification and transducers can be vintage or modern (and the associated trade-offs will apply). The same applies to digital music reproduction. Also, laws of diminishing returns also pertains to how much you spend for each component in any system. On the continuum between state-of-the-art and crap, I am at the sound-really-good point which is somewhere in the middle. I can't afford the former and can't stand the crap, so I weave a fine line in between the two.
Just focusing on the DAC, my experiments involving digital music employs vintage amplification (Sansui 9090DB) with modern transducers (ERA Design D 4s, or Warfedale Diamond 10.1s, or Epos M12.1s with a REL T-3 sub) and either a Musical Fidelity V-DAC with a V-LINK via USB or a Schiit Bifrost. Pretty nice sound.
One thing I am finding (much to my chagrin) is that cables actually matter in the digital domain. With analog, I have always found that beyond a certain quality level, the point of diminishing returns is very low judged by perceived changes in the quality of the sound, i.e., spending beaucoup bux on cables isn't worth it for me. However, a small experiment with different USB cables (a cheap computer one versus an Audioquest Forest) demonstrated a very clear improvement. Where the point of diminishing returns is, I do not know.
Digital audio is still in its infancy and there is a lot of speculation, spreading of urban legends and BS mixed in with marketing hype. I'm going slowly, not cheap but certainly not cutting edge (too much blood around cutting edges). Good luck with your experiments.
