Well, believe it or not, every digital transportations will have to have the file digital data processed by the DAC and the software itself but then will leave it alone in the digital state instead of converting into small analog state to go into preamplification and then amplification stages.
There is no such thing as “pure data” from the files into the DAC. If this was true, then you could always store your files on any Memory cards, or storage, and plug it straight into the DAC and play music, or browse through it
The next evident you have is that while using Coax out, you can adjust the EQ function too, and the digital filter! Yes, the EQ is applied during the Digital stage, your DAC will perceive it signals being processed this way, and simply converting it this way into the next analog stage. This is where manufacturers can use software to tune their sound signature. Don’t believe anyone who says that the operating system or play back app does not interfere with this process or coloring the sound. It does, and totally do so, sometime with their intentions and sometime without.
This same thing happens to Bluetooth Digital signals. Bluetooth is digital, yet is a Processed digital signals where you can also apply EQ as well
**some of the devices has these data processed by the main CPU, FE, smartphones. Some have it by the DAC, and some have a combination of both**. Anyways, the DX200 Coax Out is awesome, and the fact that it has great CPU for music application and DAC, it also has good components inside. Distortions is low, and that is what counts toward better details, extensions, and soundstage. Honestly, DX200 can even be built better. This is the reason why I am looking forward to see the Special Edition Copper or Titanium Version