You would be very right.
I'll give a bit more information since alot of you seem to be a bit clueless about this.
Basically, the DAC has 3 digital inputs. an XLR, an SPDiF BNC, and an optical input. I'ved never tried the XLR one, but heres my thoughts on the other two:
Using optical or coaxial (spdif) will come to a similar sound for the most part. However, SPDiF has less jitter than optical, and this does result in a slightly better sound in my opinion. Using the SPDiF with that cable and optical at once to do A/B testing (theres a switch on the front of the DAC so that you can easily switch between the 3 input types) I found that using the SPDiF gave a slightly better resolution and soundstage. The sound is a bit clearer as opposed to optical, so I stuck with it.
I'm very happy with this DAC but the Lavry DA10 got me interested. This is why I decided to sell this DAC and buy the Lavry, but I may end up going back to the DAC-1 in the end. Unfortunately I can't afford keeping both until I've made up my mind, so if I want to change back I'll eventually have to buy a new DAC-1 and sell the Lavry.
Thats the whole story, so help me upgrade, buy my DAC-1

I shall post pictures when I buy batteries for my digital camera.