Most of my listening is with vinyl rather than digital and I prefer a very natural analogue sound whereas (to me) a lot of digitally reproduced music has a slight glare to treble which sounds unnatural. Different DACs can either exaggerate or lessen this. As a result I’ve auditioned and used a variety of these over the years until I found something that, in my opinion was as close to the pure ’analogue’ sound I was after. That is what inputs to the HDP-5 via balanced analogue connection.
Therefore I prefer to use the balanced XLR input where digital sources (CD, FLAC etc) are already processed so in effect the processor sees everything as analogue. Processing of digital inputs to the DAC in the HDP-5 is certainly a step up from the HDP-3 - both are very good. It’s just that I am rather picky & have a setup (using the external DAC) where it is pretty difficult to tell the difference between a vinyl or digital copy of the same album. Using any digital inputs into the DEQX DAC, treble is a little more ’brittle’ (I just did a swap to make sure I could qualify this remark - the DEQX processors are so good that we are talking small degrees here & I continue to be astounded by the life-like realism that the system produces).
note: from the DEQX product overview of the HDP-5... "provides transparent analogue pass-through.......Analogue inputs utilize Cirrus Logic’s reference ‘professional’ ADC to provide absolute transparency for analogue sources such as vinyl preamps and surround receivers"....I agree with that.
For sure, in theory removing the sequence that I use (external DAC =>A/D =>D/A =>out) should benefit from reduced processing. From living with DEQX & comparative listening for over 4 years, that isn’t the case for me.