As far as I can tell, the S/PDIF coax input on just about any DAC is preferred by the manufacturer over the USB input. USB is an electrically flawed interface for audio as it brings too much electrical baggage along with it. I have yet to listen to a DAC where the S/PDIF coax input didn't sound better than the USB input.
It isn’t easy to hear these differences. I just did hear the differences and I am tired of it. It wreak havoc on my hobby and turned this upside down. In a positive note, I hear more true quality audio. I’m order to hear these differences, you need
1/ extremely revealing equipments. I have stax 009, KG T2, with all silver wiring and Nos Tubes
2/ high-end DAC that is honest (no DSP). I observed this between R2R7 and LKS004 and the R2R7 without any jumper is dead honest
3/ good Flac files or higher
The differences ? Hisses, noises, glares, sibilants, or even deformed soundstage presentations. These are all errors by the usb side.
USB is a universal Data transfer meanings, and so it carries a lot of trash with it, which then require a good external power to feed the processing board at the end of the chain (DAC). Then it really is all depending on this modules to reclock, and filter out the trash, and applying DSP to polish up the sound quality. I have seen people doing all kind of things, such as getting an isolator afterward, a Fi-Fo clocking circuitry, Regen...etc...etc...
You know what ? You can certainly DSP and processing away the errored bits and data, but that means you are losing music details. These lost details could mean a lot to your music, such as different timbres, extensions, energies, soundstage presentations, and or background noises.
So what about DDC ? Well, the same thing, because it process and filter out too much, you lose out details.
When people get serious enough about these interfaces, they do search’s and post up online too. I do see that SPDIF/Coax/I2S are the preferred audio interface. It raises a question that when do we have a transport that only does dedicated jobs about these audio processing and go straight up into SPDIF/Coax/I2S without being converted. So far, there is Cayin Idap-6 and Aune S5. Neither one that I have heard yet. But I do know for sure is that Coax sounds much better than USB, and the differences could be day/night or may not be as it depends on how much the manufacturer want to trick the end users by DSP or software level