Elk said
To be true DSD recording one must record in DSD, make no changes (no EQ, no mixing, etc.), and release it in DSD. The modern equivalent of direct-to-disc. I cannot name any off-hand.
Blue Coast Records uses a hybrid approach; recording in DSD, converting to analog for editing, and then transferring the analog back to DSD. Analog is a very different medium from DSD (lesser S/N. impulse response, frequency response, etc.) and ultimately you are listening to high quality analog. They are fine recordings however with excellent sound.
DSD editing work stations either convert the entire file to DXD (high resolution PCM) for editing, or converting just the edited portion to DXD (as a practical matter, this is often pretty much the entire file such as when apply EQ or compression). Transcoding to and from PCM to DSD can be high quality but remains a lossy process.
Of course, there are also excellent analog recordings transferred to DSD as already mentioned. These can sound great. They can also be merely adequate.
But we are faced with these same type of choices with high resolution PCM or even just Redbook. The source is the most important, followed by the quality of the transfer to PCM.
I would concentrate on how good a recording sounds, not how it is made. There are lots of reviews out there. Or do the really crazy as I do - focus on the music. Then it is merely a nice perk when the recording happens to be really good.
One that I know of who records directly to DSD and releases DSD files: David Elias
BlueCoast often records directly to DSD and releases those files. They also sometimes do what you describe. This is based on Cookie’s statements in newsletters she’s emailed to subscribers.
By no means are there are lot of direct-to-DSD recordings available, but they are there; I have some of them. Acoustic Sounds, BlueCoast, and NativeDSD are the only sites I know of that are clear and up-front about the provenance of the recordings they sell even if they can’t determine where the original recording came from (that’s for Acoustic Sounds; BC and Native have, to my knowledge, never not known the provenance of what they sell).
Some of the best DSDs I have were created directly from the original analog tape recordings (generally 2-inch tape): Norah Jones (the DSD downloads mastered by Gus Skinas from original tapes not the SACDs and not the DSD files from the SACDs), Diana Krall, Santana (Abraxas), to name a few. To my ears, original-tape-to-DSD nearly always sounds better (more pleasant, less clinical, to hyper-generalize but, again, not always) than tape-to-PCM if and only if the DSD engineer is exceptionally good and is given the time to do the best job they can do. (I’ll buy Gus Skinas-mastered DSDs pretty much blind, if the artist’s music is anything I’d like in the first place.)
Not taking away from your closing statement, of course. A good product is a good product, regardless of the format it’s in. I got into DSD a few years ago largely because it satisfies my pragmatic/engineer side, and I stumbled into an exceptionally good-sounding DAC+headphone amp+headphone combination (I didn’t realize this until some years later after I’d experimented with other combinations). Since then, I’ve heard some incredibly good Redbook and PCM downloads, thanks to updates to the DS and the LANrover. It might just be that dealing with DSD is a bit of a pain, and more expensive, so most of the people willing to bother are also really good at it for one reason or another, so the results tend to be exceptional more often than not. 
-Jim
