I have heard this arguement as well, but I had really good luck with a "GLASS" optical cable from Bettercables from my DVD to pre/pro.
If you want to go with an optical cable, make sure it is a high quality glass one rather than plastic.
At one point I used my DVD player as a transport for my DAC, and needed to use co-ax, and also as a DVD player to feed my pre/pro so I had to go optical for that connection.
When I went from co-ax to optical into my pre/pro, I got a nice kick up in clearity. At the time I went from a mediocre co-ax, to a nice optical.
So the answer is it depends on the quality of the cables involved as far as I'm concerned.