Mm...last night, I spent 2 hours listening to a few Carpenters albums and some old sentimental favorites from the 70s (Aubrey etc.), FLACs:
Setup 1: Cocktail Audio X40 music server - coaxial digital cable - HE 1
Setup 2: Cocktail Audio X40 music server - AES/EBU cable - Chord DAVE (DAC mode activated) - balanced XLR - HE 1
Switching between the 2 setups was rapid via HE 1 remote control.
Aside from the louder output of balanced setup (which is to be expected), the audible differences in SQ were not that big. Setup 2 brought the midrange slightly forward and it is like sitting in the 2 row vs. 6th row seat. Also, the Dave made the HE1 slightly clearer, brighter and more resolving (a smidge).Also, Karen's voice was noticeably airier. Setup 1 was flatter, neutral but not boring.
My initial impression stands: DAC vs. DAC is too close to call.
I ll scour my music collection for bass tracks tonight. Will listen after watching the new Transformers.
P.S. I was a bit tired prior to listening. Had fun watching Wonder Woman (8.5/10). The headphones does get warm. It is like holding a candle a few inches from your ears. But with some adjustments in room temperature (yup, you need A/C), it becomes a non-issue.
P.S. 2. Had a brief power interruption last night. The unit remained open. Upon power up again, the unit automatically activates the shut down phase (lids close, tubes retracts and knobs retracts). My headphone was not packed so the cable was caught while the lid was closing. The lid stopped closing (a safety feature I guess) but the tubes and knobs retracted. So, lesson is to pack the headphones and cable upon power interuption.