SPDIF connection would provide a PCM signal as you indicated, but when connected via HDMI to a suitable SACD player the BDA-3 will receive and decode the DSD bitstream from an SACD.
Please let me get back on this just to be sure:
I've set the outputs on the sacd to pcm, and depending on the audio on the sacd, the highest i will get is 88.1/24? If I set it to bitstream, I will get the dsd format, and the resolution would depend on what's recorded.
Where I thought to have to buy a new player, was thinking of the Oppo 205, I would in fact need a new dac which can decode all those formats? Only thing my current BDA1 decodes is the PCM stream, which is limited per SACD design. Would i be able to play the Bitstream/dsd signal, i would be enjoying the max possibility of these discs?
Of course the Oppo gives me an updated DAC too, and does it all in one machine, which can be connected to the BP26

Which would lead to another problem: need more balanced inputs on the BP26. Cd, and Dac are connected now, so no spare inputs left.
If id hook it up earlier in the chain, id choose the AES-EBU route to the DAC. Which the Oppo hasn't got...
Cheers,
Marius