I've been away for a while so if this has already been said, sorry.
SACD does have copy protection, but due to the way it's encoded, the copy protection info does not have to be a part of the audio signal, so it's inaudible. Sony are very coy about this but Tom Meitner said so in an interview in Positive Feedback. Can't say the same about DVDA's copy protection inaudibility. Oh, and hackers cracked DVDa in very short order. Hehehe.
The benefit of the large frequency response is that you are able to have alaising filters that are much gentler in slope, and so cause less audible phase anomalies in the passband. It also means you can actually record all the higher harmonics which are present in lots of musical instruments. My experience tells me that an earlier, gentler roll off is always better than a higher, sharper one.
DSD should sound better than PCM because it works in a way that is more similar to our ear/brain. As sounds get louder, our ears distort more. When volumes are low, they distort less. I have a URL confirm this, but the host is down for maintenance for 3 days. Intuitively, this makes sense though. We evolved needing sensitive hearing at low levels to not become food. The lower level information is what's required to fool the brain into beleiving it is real, or at least allowing you to relax enough so that you forget all about the hardware side of things. This, as well as the really crappy HF performance, is why CD sounds so bad.
PCM gives minimum distortion at full scale, and progessively worsening performance as the level is decreased. Few 24 bit A/Ds and D/As approach 24 bit, especially in consumer gear, most of which is lucky to make 20/21 bits. PCM 'noise' is also dissonant with what we know as natural.
DSD gives it's best performance at lower levels, and progresively gets worse as the level rises, ie, similar to the way we hear. The noise must also be shaped and moved up above the spectrum, so it is far less audible. It also has a larger low order harmonic structure, so it is more pleasing to the ears.
However, all of that is irrelevant to most consumers. WE here at this and other audio forums are the rarified end of the spectrum. Most people I know like listening to my system and are often impressed, or better still, moved to tears or wanting to dance, things that don't happen on their inexpensive gear. But they are usually very happy with what they have and seldom want to even upgrade to cheap 'component' system.
So, where do they get the benefits of DVDA or SACD? Nowhere, except maybe surround, which IMO is a bit of a gimmick. NO ordinary consumer I know is remotely interested in DVDA/SACD at all, especially if it can't play DVDs and doesn't have a digital output so they can make digital copies. The new formats and machines have no features or benefits that people want or need. I defy you , let alone Joe Sixpack, to tell the difference between a DVDA/SACD and a CDP on the average, non-audiophile system out there.
I feel the manufacturers are looking for a way to
-sell us a new product, as CDP market penetration is almost complete
-redefine the cost of music as they did in the LP to CD changeover
-install digital copy protection so you can't make digital copies. Remember CD burners and Napster/MP3 success caught the record companies hopping. Look at their profit levels. People want cheaper, not more expensive music.
They ae trying to sell this new format to the audiophiles first, 'cos that's the only way to try to get any market penetration, and 'buzz' happenning.
I am pretty sure they will both fail. Did I hear someone say DCC or DAT?
Lastly, the dynamic range argument is a moot point, I good ribbon or condenser mic, in a good studio has a dynamic range of about 80dB, and a good 1/2 or 1" master machine is approaching, and in some cases exceeding that figure now. My new machine will when it's done. And the anaolg noise is a much more pleasant spectrum to listen to, being like white noise, which is used in many applications to mask other sounds. Oh, and Tascam are starting production again for some analog tape machines due to demand in the industry.
Analog rules mon.