This is incorrect. If it doesn't receive a signal during the time period, it is evaluated as a 0 or off.
So a signal with severe timing issues would be more like this:
101010 ideal signal
1 0 1 0 1 0 Your idea of jitter
10001000100 More proper representation.
The periods where signal aren't received are a an 0. Because the receiver is either getting a light pulse = 1 = ON, or no light pulse = 0 = OFF.
There is either 0 or 1, no grey, no in between, no blanks.
There is a lot of literature out there on the best ways to do this, but they took the easy way out for digital audio over toslink. 01=1, 10=0. 00 or 11 is an error. It might be the other way around
Back to the op. This means, at a bare minimum, 50% of the bits you are sending over that cable are dedicated to finding flaws in the signal. There are more bits being sent that are dedicated to evaluating the link (and thus the cable) then there are to actually play back your music. As long as your cable is good enough s.t. the link is good, your cable is fine.