Hi James,
Apologies for letting your question hang--I did not get a 'ping' and only just wandered back here....
Now you have put me on the spot! I only understand this subject from what I have read--and I have limited luck finding things I've 'carefully' filed on my computer. I can throw up a few things which might, at least, give you something to agree/disagree with.
Definition: We define connection type via impedance. So, Balanced has two conductors with equal impedance to ground. Unbalanced does not.
[ref: Bill Whitlock, Jensen AN-003]
Three quotes from the same source:
1) "AES recommendations require the impedance on hot/cold to be balanced, but to actually produce a signal on the cold wire is optional."
2) "Bill Whitlock provides a good expose on what balanced means.
The crux of the story is: you don't need a symmetrical output signal. The 'requirement' for a symmetrical output signal is one of the longer standing myths of audio.
You need to have identical impedances on the hot and cold wires, and a good differential input. It means you can make a fine balanced output on an unbalanced pre-amp by simply tying the cold wire to ground through an impedance which is identical to the impedance of the (unbalanced!) output buffer that drives the hot wire. The differential input does the work."
3) "The most important thing to do is to use the differential inputs to extract the output signal from your pre-amp referencing the pre-amps ground. Outside audio this is known as Kelvin sensing"
So....following instructions, I (for my DAC to amp—can not assume this is a ‘universal’ formula) wired a 'twisted pair' thus: RCA end: "tie cold lead and shield together to ground--XLR end as appropriate, Pin1 Shield, Pin2 Hot, Pin3 Cold (to ground at preamp)--In this way, ground currents that flow from chassis to chassis do not flow on the cold wire and place no voltage across it"
I hope that gives some rational explanation!
Not sure what the Bill Whitlock citation above is [he is of Jensen Transformers Inc] but there is a Power Point style AES paper from Whitlock titled "Real-world balanced interfaces and other-world myths" which deals with some of these issues, here:
http://www.aes.org/sections/pnw/pnwrecaps/2005/whitlock/whitlock_pnw05.pdfI’d be interested to know what you think.
Mark