Let's talk about the Cirrus DACs used in the original BDP83 stereo output. Looking at their datasheet (CS4398), it says they have a "Non-Decimating Volume Control with 1/2 dB Step Size and Soft Ramp". Their functional diagram clearly shows this function is performed by a digital filter, a simple multiplier really, to reduce the volume in 0.5dB increments. This is what Bob meant by the volume control being done within the DAC as opposed to being done in the mediatek decoder. Oppo decided to use 1dB increments or else you'd have to press the remote volume control 'forever' before you hear a discernable change in levels.
Wadia (an excellent and admirable company btw) implements a more complex digital filter with volume control as well(a fancier multipler) to maintain resolution as for as long as possible.
With a 24-bit audio input datastream, multiplied by a high precision coefficient value between 0 and 1, you'd get a number which still is high precision and not simply bit-shifted to the right which results in dropping bits.
This isn't much different than an analog volume control where the output is simply the voltage read from a high quality pot.
So, using the Oppo83/93/95 volume control doesn't have the bad effects on would expect from bit dropping. If you can hear a 1dB difference in levels, good for you. I know i can't for i tried, failed and gave-up.