I'm happy to see you're continuing with this debate, I appretiate that!
1) in proprietary, everything is possible, I was talking more about the actuall implementation of the technology in wide practice..
2) I'm affraid I don't understand what you're trying to say here, could you please rephrase and be more specific?
3) DSDwide is just a 4bit SDM, nothing more as far as I know and as such it works the same as ordinary DSD.. I still don't see the possibility to edit SDM without increasing the bit depth and at least light filtering before encoding back to SDM.. it's the same as with editing PCM and applying noise shaped dither, once you do anything to it, you have to perform the noise shaped dithering again, in fact it is usually performed only at the end of all operations.. both oversampling and decimating require filtering to work and it absolutely have to work in PCM, or in other words with high resolution amplitude information.. prove me wrong - show me the principle of operation of a system working with noise shaping..
addendum) we're moving on point here.. if you take bare PCM, that means without any applied noise shaping, then it's performance is determined solely by the bit depth and is the same over the whole usable bandwidth, which is fs/2, this is in direct contrast to noise shaping system, whose performance deteriorates with increasing frequency and is given by sampling rate together with bit depth.. holding to your examples, 16/192 can be better than 24/96, it depends on actuall implementation and what you are after.. clearly 16/192 will have better properities for content between 48 and 96kHz
if that's what you're interested in.. when you apply sufficient noise shaped dither on the 16/192, you can probably achieve >20bit performance at the beginning and still >12bit at the end of the usable bandwidth.. which is better? this is the balancing between performance distribution among various frequencies, bit depth and sampling rate.. DSD has incredible bandwidth, however it's performance is usable only at the very beginning of the available spectrum.. higher samplerate is better as well as higher bit depth.. now let me ask you, what do you think is better, 1bit/128Fs or 2bit/64Fs? we can of course continue with 4bit/32Fs through 8/16, 16/8, 32/4, 64/2 to 128bit/44.1kHz
it is clear that anything past 24bit is useless as we're absolutely not able to record or playback with such precision, it's only useful when doing math with the signal, but not on the distribution medium.. but that 16bit/352.8kHz seems pretty viable option, with a light use of noise shaping on the few least significant bits, we can achieve greater than 24bit performance in the beginning of the spectrum with at least 20bit at 20kHz and decent performance after that with residual out of band noise at levels bellow 8bit.. the thing is, with commonly used PCM hi-res formats now at 24bit, there is no reason for using noise shaping on them, there's no reason to aim for better than 24bit performance.. DSD as it is now has really good precision at lower frequencies, but only so-so performance on higher frequencies, which is the nature of SDM, but the problem really is the amount of out-of-band noise one has to deal with..
the wordlength cannot get any smaller but the sampling points can be closer hence quantisation noise is smaller
the quantisation noise is determined solely by the bit depth and it is the same regardless of samplerate used, higher samplerate only provides more space to shape this quantisation noise and allow greater performance in the beginning of the usable bandwidth..
the funny thing is, noise shaped dither can make 16bit perform as >20bit, but it needs a space to operate (ultrasonic frequency range), which unfortunately on CDs doesn't have
and on the other hand, with hi-res formats, where the space is (at least between 20-48kHz), there is no need for noise shaped dither anymore due to the 24bit bit depth
before making a decision, we have to determine what we demand.. it is probably >20bit precision over the whole audible frequencies, we also want certain headroom to allow for much gentler band limiting, resulting data should fit onto DVD in six plus two channels, anything else? and of course we want as little side effects as possible.. pure 24bit/96kHz PCM matches all of the above and it is the simplest approach too, easy to work with, no problems bound with it..
although in my eyes, having 24bit precision at ultrasonic frequencies is a waste of space, to me it would be more clever to improve on impulse response, which means increasing the bandwidth and of course decreasing the bit depth, that way we can still have the same or nearly the same precision in audible band, but a lot more extended ultrasonic region and hence better impulse response, still with sufficient precision.. 16bit/176.4kHz is what I'm speaking about, this is the same data amount as 1bit/64Fs DSD and a better format in my eyes..