I've found that some DACs do a good job with PCM, other DACs do a good job with DSD, and few DACs do a good job with both.
There are so many types and qualities of DSD recordings. Some are made direct to DSD in the most modern of studios and many are made from old analog or PCM masters with a wide range of qualities.
I know that "sterile" DSD character you guys are referring to, and I think that is more a characteristic sound of specific DACs and specific recordings than a universal limitation of DSD.
I've heard some DSD recordings sound breathtaking and lifelike.
I've heard some sound worse than the average CD.
I've heard some that were very impressively resolving but with a weird "sterile" background.
I could make similar comments about CDs and other PCM recordings.