I don't know why you guys are not talking about this, but I think that the real issue with using the DAC to attenuate the volume is whether that is achieved by analog or digital methods.
If it is done digitally, then you are definitely losing original bits from the songs. Lossy. Think mp3. No surprise if you lose "3D", and you're probably losing something in the 2D and 1D and 4D and 23D as well, whatever that means. Lossy. Worse with more and more attenuation, and if you're bringing it down from 100 to 60ish then you can forget about hifi.
If the attenuation is done via analog, then of course it depends on how well it is done. Now that is precisely what a preamp is suppose to do! A good one should do it well, and if the DAC outperforms it then we are talking about one hell of a great DAC (or one lousy pair of interconnect cables).
I know that the squeezebox attenuates by digital manipulation; I'm pretty sure that the Transporter does the same thing. This thread will shed some light on this,
http://forums.slimdevices.com/showthread.php?t=30916
Basically, you want to listen to the slimdevice gadgets at maximum volume and attenuate with something else; or use them to get the 1s and 0s into whatever DAC you like, and then go through there to, once again, a preamp.
Anything else and you're asking for lossy data. Mp3s, maybe nice mp3s, but still mp3s. The whole point of flac gets tossed into the bitbucket.
I have no idea what the PS Audio dac does to achieve this. If it trumps a preamp, then it's a better preamp than that preamp. If it trumps all preamps, then it's a hell of a preamp (well, except for its lack of non-digital inputs!). But if it does it digitally, then it's lossy. The fact that their web site does not mention this issue is not encouraging,
http://www.psaudio.com/ps/products/description/perfectwave-dac?cat=
since it is a clear big selling point and they should be explicit on the method (sadly, the logitech transporter site does not mention it either). For $3k, I would expect one hell of a volume knob...