There is a mental picture that I use to understand how digital distortion works, and where to best spend my money and effort. Maybe it helps others as well, or others help upgrade or correct this picture.
So, consider a perfect sine wave. Now turn it into a perfect set of samples, using any sampling rate you like. Everybody will agree, that in order to turn it back into the perfect sine wave, each of those perfect samples must be applied at the perfect point in time. In reality this is not happening. Imagine now the picture of the sine wave with each perfect sample a bit off on the time axis. The resulting signal is distorted. Furthermore, the distortions are not just simple harmonics (like in analog), but any kind of nastiness (well I’m guessing here). This is possibly a reason for the digital vs. analog. And it should also explain why you will not hear a difference in just turning up the volume with nothing playing and comparing the hiss you get. Applying arbitrary small samples at arbitrary times does just not sound any different.
The problem is that many (most?) DACs derive the timing of the samples at their analog output from the jittering timing of the digital input data. A reason why better digital cables, streamers, DDCs, reclockers, jitterbugs, etc. help is, that they reduce the timing error of the digital data that finally arrives at the DAC, helping the DAC to apply the sample at a more perfect point in time.
Another strategy from a system point of view is to design a DAC to just receive the bit perfect audio data, store it and do everything possible to generate its own clock with perfect timing for the samples at the analog output. This it what the more expensive DACs do. The more expensive, the more perfect the timing of the samples. I even believe the DAC is the real place where it counts. You can get perfect time anywhere in between in your chain, that’s nice to have. But if you dilute it again on its remaining way to the analog output, you don‘t get the optimum of your chain.
Gosh, that’s already longer than I thought it would become,…