Again, what you say is true but also again, what difference does it make? To put it in terms of the quote; Why do you need a consumer distribution file format to provide "noise level close to 24 bit PCM"?
Yes, 1 bit DSD has problems, limitations and difficulties in implementation but AGAIN, just stating this is typical of marketing BS, because it ignores context, the fact that other aspects of DSD implementation are far easier/cheaper. And yes, there is potentially some instability but in practice that was overcome (beyond audibility) over 20 odd years ago. So in effect this is just like a typical audiophile marketing "red herring", a real problem that we/our product solves, which is simply a lie because either the problem, though real, does not actually affect digital audio or it's a problem which does affect digital audio but was already solved years/decades ago and should already be built into ANY competent product!