DXD is actually not DSD, but rather a really high res form of PCM. Think of it as a WAV file - there's no compression at all, so as you noticed, the files end up huge. It's normally used for mastering since DSD doesn't lend itself well for the editing stage. So while it can sound excellent, it's not really practical.
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Matrix X-Sabre DAC review and impression thread - Page 8
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