Arj,
referencing your original question about I2S, if you have the patience to wait a few months, I think we will start seeing more products trying to use a native I2S interface. PS Audio's new Transport and DAC will be making an I2S connection using HDMI plugs/cables. My hope is that others hop on the bandwagon and begin using HDMI to transmit in native I2S format. Since HDMI cables and plugs are readily available for other purposes, the market barriers to entry are significantly lower for this application.
This would represent a major technology upgrade to one of the weakest parts of PC and digital audio. I have a hard time imagining everyone NOT jumping on this once industry heavies like PS Audio take the lead. I'm also betting (hoping?) custom shops like Steve at Emperical will be able to modify a SqueezeBox or Sonos with an HDMI I2S connection while we wait for manufacturers to ante up.
If the industry could standardize on HDMI components to transmit native I2S, we could kill off the crappy optical and SPDIF connections we use now and virtually eliminate the need for expensive re-clockers (sorry about that part, Steve).
My $.02. In a horrible economy, people aren't going to plunk down big money for something unless it makes a big difference for them. I think this could be it.