Mp3 is not problem per se, quality of streaming suffers because of limited bandwidth problems of many internet stations. It's just that Eitr doesn't handle this situation well.
The issue with Eitr is similar to any other separate USB/SPDIF converter. You have double digital cabling. Asynchronous Isochronous USB transfer (UAC1 or UAC2) is lossy, it's hungry for a quality USB cable. S/PDIF is jittery protocol. So you'll introduce both some loss and some jitter, which can be minimized by using good digital cables (with S/PDIF coax length of cable is in stake as well). I think this is prerequisite to real improvements in sound, otherwise you just introduce too much additional issues which can negate its benefits.
With some coax cables, Eitr combo was not the winner.
I've used only quality quality USB cables proven through listening comparations to me, so there were no issues from that side. However I've never previously used coax so I'm still in the process of finding a good coax cable. But with S/PDIF it's more complex. With USB it's simple, shorter is better. With S/PDIF, you need a certain minimum cable length to allow rise time cycle to finish, but preferrably not much longer than this. And rise time specifications are different from (transmitter) device to device, and often they're not published. I'd love to know Eitr's rise time specification. Currently I've been using a 40 cm coax, but I should further experiment with lengths between this and 1m length to determine if this is a good length, or I need more length for less jitter.