Though I have not heard music formatted in DSD I am interested. I thoroughly understand the pro-recording process. I’ve recently read about Merging Technologies system of recording and editing in DSD. Would love to work with it...
Having looked at the Merging Technologies site and some of their documentation it would appear that like others they are not editing in DSD, rather they are converting DSD to DXD (a PCM format) and then converting back to DSD. They are generally doing this in real time rather than converting to PCM, making all required changes and then converting back to DSD (although their software also allows this option); this means that the files will undergo multiple conversions during mixing/mastering (generally very small errors, but they can add up). This is not to say that there are not also conversions required during mixing/mastering PCM originated files; but they do not claim to have the 'purity' of DSD. It's not surprising that they use DXD as they supposedly created this format with Philips for editing DSD. They are at least honest that DXD is a PCM format; whereas, much consumer SACD/DSD information implies that DXD has no relationship with PCM.
PS Although I believe that there are some issues with DSD, I also think that there are some very good DSD recordings as well as bad ones, just like PCM.