Hi Andrew,
I have both the DC-1 and the multibit Bifrost. The former was bought as the centerpiece of a mini system for my Brooklyn crash pad as it's so useful. My FM tuner would plug into the analog input, while the digital inputs would be fed from a computer, a TV, and a Blu-Ray player. Headphones and Airmotiv 5S speakers complete a neat and compact system.
I wrote "would" because I've yet to haul the 5Ss and DC-1 up from my NJ home. So I was able to compare the two DACs. To MY ears, and in MY system (coax input from Sony 5400ES, output to Shindo Monbrison, Shindo Montille, and Devore Nines), I much preferred the Schiit. I'm now eager to upgrade to either Gungnir or Yggdrasil (hopefully the latter, as it's so much fun to pronounce correctly) and return the Bifrost to my chairside headphone system.
This was, of course, a totally non-scientific test. But the Bifrost did give me a more convincing illusion of listening to real instruments in a real space. The DC-1's image came across to me as a little grayer and two dimensional.
I suspect the differences will be less on the (much less expensive) headphone system. I'll plug the 2 DACs into Jotunheim's SE and balanced inputs (Bifrost & DC-1 respectively) in a couple of days and try to get back with my impressions.
Ken.