Based on the follow excerpt from the Wikipedia DSD entry, I would conclude it is all much ado about nothing - or at least nothing meaningful. It appears the experts can't agree.
"There has been much controversy between proponents of DSD and PCM over which encoding system is superior. Professors Stanley Lipshitz and John Vanderkooy from the University of Waterloo, in Audio Engineering Society Convention Paper 5395 (2001), stated that 1-bit converters (as employed by DSD) are unsuitable for high-end applications due to their high distortion. Even 8-bit, four-times-oversampled PCM with noise shaping, proper dithering and half data rate of DSD has better noise floor and frequency response. However, in 2002, Philips published a convention paper arguing against this in Convention Paper 5616. Lipshitz and Vanderkooy's paper has been criticized in detail by Professor James Angus at an Audio Engineering Society presentation Convention Paper 5619. Lipshitz and Vanderkooy responded in Convention Paper 5620."