When I was comparing DAVE with TT yesterday:
http://www.head-fi.org/t/756029/chord-hugo-tt-high-end-dac-amp-impressions-thread/795#post_12988529
the biggest shock was how noisy DAVE makes TT sound. The measured numbers for both are "far below" what traditional arguments about the audibility of hi-fi measurements would imply. Yet there it was, lots more noise. Some of the noise really felt like the noise modulation that Rob talks about, e.g. rising and falling as a singer sung each word. I described it as a "river of noise lapping at the edges of their singing". For some reason this effect seemed strongest with vocals.
Curiously in some pieces of music, noise in the recording (relatively loud hiss or mains hum buzz) was magnified by TT in comparison with DAVE. Even when I turned DAVE up much louder, the noise in the recording remained relatively quieter versus the music.
Occasionally I also heard a sudden change in loudness of the music when extra instruments joined in, when listening with TT. This change in apparent loudness was completely absent with DAVE. It seemed simply like distortion, what we often describe as a recording having a congested feel.
I don't know what mechanisms in digital to analogue conversion are causing these "faults", WTA filtering, noise shaping or the sophistication of the output elements (20 in DAVE versus 4).
Obviously, by plugging headphones directly into TT and DAVE I'm exposing the comparison to the quality of headphone drive. I definitely noticed that TT "struggles" with HD 800 S somewhere in the region of -20dB on the volume control (obviously varies with the nature of the music), getting softer in the bass than DAVE.
Perhaps these "faults" I heard might just be due to running the TT straight into headphones, with TT being closer to its limit. (Directly driving headphones is the only way I listen, though.)
After all that, I really think the proof is in the listening. Mojo has a wide-ranging set of reasons for sounding worse than DAVE (no galvanic isolation in addition to what I've listed above). What I learnt from my comparison is that the family sound of these Chord DACs is very strong. They make thoroughly worthwhile music for the same basic reasons.
It might be better to simply say that the Chord DAC scale is completely different than any other DACs. Other DACs are on an orthogonal and irrelevant scale in my opinion. My phone (which I enjoy despite the fact it's basically crap) makes music seem as though it's in black and white, not the colour I get with my TT. I strongly suspect most DACs are, at best, sepia tinted. It seems entirely possible to me that most of the world is listening in black and white...