For what it's worth, when going via toslink, there are at least two additional conversions the signal has to go through. Once, from electrical to optical at the source. The other at the receiver/DAC end where it;s converted back from optical to electrical.
In any case, its SHOULD be simply zeros and ones and the less steps it goes through, the better the signal should be. The way these digital thingies work is that they generally work or they don't. There's no in between.
On the whole, coax is cheaper, easier to run, makes a more sturdy connection and is cheaper. Oh, did I say that already?
I'd consider tosling only if I had major electrical interference problems that affected the sound, which don't really exist in a home environment unless maybe you're Dr Frankenstein, or else I had no more coax I/O available.