...the digital stream , the 1’s and 0’s, are sent to the DAC that converts to analog, as long as those 1’s and 0’s get there the DAC reconstructs them using it’s clock since the embedded clock information and any jitter that was sent in the stream has been isolated out
In an ideal world, but that's not the world we live in. PLL's and downstream buffers, registers and dividers are all affected. IF there is a reclocker in the DAC, then the effect is usually less, but if you can change coax cables and hear the difference, then source jitter still matters. If it really worked as good as you claim, then everyone here would only need a $20 Markertek coax cable to achieve the best SQ.
Steve N.
Empirical Audio