Yes, dbphd, I followed Tim’s advice and tried it myself. Not only is the SACD blocked, but the signal is also processed/degraded before it goes out the Toslink. Here’s a quote from the manual:
"Due to bandwidth limitations, high resolution audio formats such as Dolby Digital Plus, DolbyTrueHD, DTS-HD High Resolution and DTS-HD Master Audio cannot be sent through the coaxial or optical digital audio output. A reduced resolution version of the same audio track will be output instead. To listen to high resolution audio formats in their best quality, please use the HDMI connection if you have a receiver that handles HDMI audio (see page 11) or use the multi-channel analog outputs if you do not (see page 16)."
And I could hear the difference. So HDMI is the way to go.
(Now I am scratching my head about the OP’s conclusions comparing Toslink to RCA.)