so..why does DSD > PCM sound better than just PCM?
Look at it this way.
If you master something at 24/96, and then use the best software you have available to dither/shape/resample to 16/44, will it sound better than something you just mastered at 16/44 to begin with?
If you say yes, then you understand.
DSD at 1bit / 2.8 or 5.6mHz is a much higher resolution than 24/96. And when you dumb it down to that PCM resolution (no matter what resolution), it still sounds better than if you mastered at the "target" resolution to begin with.
Same argument for R2R really. that is higher fidelity, and most people would prefer to master w/the highest resolution possible...which yields better sounding results after the fact.