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Dude, look at the pic in the link provided.
I'll make it easy for you. There is an 11 pin USB to DIGITALLY connect to other FiiO devices, and a LINE OUT port that is separate. You can not have a DIGITAL USB LINE OUT.
Craig - its just a misunderstanding with terms. He's talking about the connection between the X7 and the dock being USB. So the X7 is actually sending an analogue signal through that port - to then go to the docks line-out rear port. The dock doesn't have a DAC.
And the 11 pin USB can transit an analogue signal - it does the same on the K5.