The reason an active line section can sound better than a passive has a lot to do with interconnect cables. Passive controls have poor output impedance- usually quite high, which allows the interconnect cable to do its worst mathematically speaking- and this is audible as others on this thread have already pointed out.
If the line section has a low output impedance it can swamp the characteristics of the cable- in other words its output impedance dominates that math I mentioned. So less effect. If you've ever had to audition interconnect cables to pick the one that sounded right then you know exactly what I'm talking about.
Now this problem was identified and dealt with by the recording industry decades ago and resulted in what we know as the balanced line standard (AES48). If you equipment conforms to this standard you'll find very little difference between cables. Most high end audio products do not, but if you have one that does, interceding it between your sources and amps can easily increase transparency if you keep the connections to your sources short.
Now of course such a line section could be built into a DAC- but then you have the issue of if you ever want to improve the DAC or the line section, you have to replace both (and its often not a good idea to have a DAC and line section run off of the same power supply). DACs are notorious for going out of date; this is a very real issue.
If the line section has a low output impedance it can swamp the characteristics of the cable- in other words its output impedance dominates that math I mentioned. So less effect. If you've ever had to audition interconnect cables to pick the one that sounded right then you know exactly what I'm talking about.
Now this problem was identified and dealt with by the recording industry decades ago and resulted in what we know as the balanced line standard (AES48). If you equipment conforms to this standard you'll find very little difference between cables. Most high end audio products do not, but if you have one that does, interceding it between your sources and amps can easily increase transparency if you keep the connections to your sources short.
Now of course such a line section could be built into a DAC- but then you have the issue of if you ever want to improve the DAC or the line section, you have to replace both (and its often not a good idea to have a DAC and line section run off of the same power supply). DACs are notorious for going out of date; this is a very real issue.