I'm coming from the technical perspective. ASR would have us believe that DACs are solved - they all sound alike and there's no point buying anything other than a £50 Chi-Fi product. Those of us who use our ears, or who have looked more closely at implementation know this isn't true. There are still technical hurdles to overcome, particularly in reconstruction filters where, as far as I know, no DAC is yet able to reconstruct the original pre-sample analogue waveform. Is that even important? Well, yes, I believe so, and I think that much of the differences we hear between DACs will be down to reconstruction filters and the way different designers try to overcome that problem. Currently, DACs remain "unsolved", and thus the digital format is "broken", in a technical sense.
Whatever technical problems there are left in digital -- and we might disagree on that -- like you I use my ears. And these tell me that digital becomes more and more satisfying, with some of the last issues that may have held it back being solved in a convincing manner. For example, I hear from my Mola Mola Tambaqui DAC pristine, clear highs that are non-fatiguing, and the sound of tenor saxophone in its full-bodied, fleshed-out harmonics finally is comparable to that of high-quality vinyl playback. It always had been a strong point there, and a weak point in digital. No more, to my ears.
If DACs remain unresolved, the same argument could be made for vinyl. Why does all vinyl playback sound different if there is a "perfect analogue waveform"? Turntables, tonearms, platters aside, even if you just change cartridges the sound changes. Not all cartridges can be "right", can they? So the true "perfect analogue waveform" remains unresolved, doesn't it? Does this mean that the vinyl format is "broken"?
(Spoiler: I don't think so.)
The ASR view is actually what we should want from our DACs. That discrete little black (or silver!) box that perfectly reconstructs the original pre-sampled analogue waveform. No more. No less. But we don't yet have that, and so the question here then is what are dCS doing in the Varese that allows for the digital source to come through so wonderfully (and why does that cost so much to achieve)? And conversely, what are their competitors (including their own lesser DACs) doing that is degrading their sound in direct comparison. Is it reconstruction? Noise in the device? Power supply? Components? All these things? That any of these things can and do affect digital sound so readily reinforces the idea that its a "broken" format to me.
I do agree that digital is more vulnerable than "Perfect Sound Forever" suggested. But vinyl playback is vulnerable as well. Why do different turntables, platters, threads for belt drive, power supplies, tonearms, cartridges all have such an, in many cases profound, effect on the sound? *) Not to speak of the different sound of phonostages. If only one of the resulting sounds can be "right", then all the others must be "degraded", no? If vinyl playback is so vulnerable to all these factors, by your standards it must a "broken" format too.
(Spoiler alert: I don't think it is.)
And while vinyl playback with all its flaws had been already for a long time a musically robust medium, digital is becoming more robust too. For example, rhythm & timing (the foot tapping factor), something that comes so easily and naturally to vinyl (even though not all vinyl excels equally), had been lacking for a long time in digital; in my view this was a real crisis point in the 1990s. Yet my last 4 DACs (since 2013) have been very robust rhythmic performers. I'll put the infectious swing on jazz and raw, terrifying, animalistic rhythmic drive on great rock of my current DAC confidently against that of any turntable.
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*) And proper cartridge alignment seems to be an art, mastered by relatively few. Why is proper setup of vinyl so difficult and vulnerable to mistakes? Its (electro-) mechanical nature does make it vulnerable in its own way. A DAC is simple, you just put it in a rack (ok, different platforms and footers may make a difference, but you get my point).