Maybe 99% of the DACs today are delta-sigma (DS) and most music is in PCM. A DS DAC accepting DSD is interesting because the later stage before the reconstruction filter is similar to DSD. If you are using a player like Audirvana converting to DSD in the computer will take some burden off the DS DAC and should sound better than the PCM stream that will be converted in the DAC. If the DAC has very good timing like the Mojo, there is no advantage in sending DSD from the computer (unless you are playing a native DSD file and not converting from PCM). And if it is a R-2R DACs like the Modi 2 multibit, operates in a different way and in that case PCM is the better option (and sometimes the only option).
Toslink is prone to jitter but gets better when the cable is made of glass instead of plastic, on the plus side keeps the computer isolated from the DAC. Asynchronous USB should be better, data is re-clocked in the DAC, but usually isn't electrically isolated from the DAC and the electrical noise coming from the computer on top of the digital signal degrades the DAC performance a bit.
From the software, to the type of connection, to the DAC, everything makes some difference, and it starts to get expensive relatively soon.
The Mumby would be a good option and sits nicely on top of the Magni, but you would have to save a bit more. Between Toslink and USB will depend on your source, the only solution is to try and hear which sounds better.