Why do you say FLAC will never sound as good as WAV? My understanding is FLAC is 100% lossless. If a device were to decompress the FLAC input and place into a memory buffer which then feeds a DAC, shouldn't FLAC sound as good?
FLAC and wav contain the same data, however every DAC I have tried with every playback app that I have tried shows that on-the-fly decoding of FLAC impacts SQ. The image and soundstage are affected. You need a good system to hear this, but it's there.
And regarding ethernet, it would seem the fix to all of this crap with sync/async would be to standardize on a protocol for audio that is similar to TCP/IP in that it features error correction built-in which feeds into a memory buffer (memory is cheap nowadays) which would then feed the DAC section. I have no idea why the audio community hasn't figured this out already.
Packetized data with Ethernet works well, however the signal integrity and rise-time still impacts SQ with Ethernet. Therefore, it is still important to have a fast driver in a Router or Switch and low-loss, high-bandwidth Ethernet cables. Adding an isolator also helps with the capacitive leakage across Ethernet transformers.
The bottom line is that there is no panacea. Every interface and protocol seems to have deficiencies. The deficiencies with Ethernet seem to be the easiest to overcome, but at a cost of course.
Steve N.
Empirical Audio