Isn't Coax with galvanic isolation also free of noise issues? Or will it depend on specific implementations, i.e. how much noise is being picked up and passed downstream the audio chain?
Good question!
Excepting radiated noise/shielding issues, fundamentally, yes.
Galvanic isolation, whether via a transformer (as originally specified for the transmitter for S/PDIF over coax but rarely implemented in cheaper products) or through an opto-coupler, will eliminate ground-loop issues between source and DAC as well as provide isolation from other power-supply related noise issues in the source.
There can still be noise/interference induced in the connecting wire, though coax is pretty resilient there. Using a balanced digital connection, with galvanic isolation (e.g. AES/EBU XLR) gets around that problem.
With the gear I've used, AES/EBU XLR sounds the best to me. It is not available on all gear and is pretty much non-existent on computer sources. TOSLINK is more prevalent, ditches all these issues (though certainly has its own) and is cheap and simple.