May I suggest another way of looking at DSD. People get confused by looking at it as a digital format. It isn't, it's analog. While it's storeable digitally, since it's restricted to two levels, it has no values associated with it. It's actually an analog modulation process of a simple squarewave bitstream, running at 2.82MHz for 64fs DSD.
The process is very simple, and is explained here:
http://www.embedded.com/design/debu...-of-sigma-delta-analog-to-digital-converters-
It's as analog as FM radio, where a RF carriers's frequency is modulated by the instantaneous audio signal amplitude. In DSD, which is actually a coined marketing term for 1-bit two level Pulse Density Modulation (PDM), a bit stream's density is modulated by the instantaneous analog signal amplitude. The higher the instantaneous analog level, the greater the bit density. The Scarlet Book spec chose 0dB to equal 50% modulation, leaving +6dB headroom.
An important point is that, unlike PCM (which many confuse with multi-bit two level PDM), there is no value represented. To obtain a value, a multi-bit PDM word has to be generated, which then has a mathematical absolute value/weight relationship between the bit streams, and therefore operable in a digital computer. But it has no greater data resolution. To get more resolution, you increase the bitstream rate.
The point of all this is recognizing all acoustic to electric transformation (A/D conversion) begins with a variant of Delta-Sigma Modulation, which operates at least 8X any PCM sample rate. To yield PCM (a series of 2's compliment binary word values, like frames in a motion picture film strip) the PDM bit stream(s) must be filtered (decimated) to remove all energy above the half frequency (Nyquist) of the new lower PCM word rate, then be converted to a value/word based system. None of that comes without some cost to sound quality.