Do hi-end DACs offer true value or diminishing return...

@danager What is your definition of value? Are you talking merely dollars or the importance of sound? 

The value refers mainly to the SQ.  You could argue that the techonoloy and quality of components such as power supply module should also be counted, but ultimately what really matters is whether that can be translated to the SQ enhancement.  Take Denafrips product as example, if Terminator Plus ($6.5k) costs 3.6 times over Pontus II ($1.8k) but the SQ is just twice as good, we have diminishing returns.  However, the hard part is that how the SQ is perceived is heavily individual dependent and always a contentious subject.  Let us change our perspective in sound a bit here.  Can we even "measure" the quality of sound?  Can we create metrics and standard procedure to measure the SQ?  We understand a microphone and software could be used to measure SPL but not the subjective perference of a human auditory neurons and brain?  A perfectly flat response curve may be ideal but the sound reproduced from such a stereo system might be boring to some.  I am by no means an expert but there is psychoacoustic theory behind it that talks about the measurement of quantifiable psychoacoustic "entropy."  One aspect of theory relates to analyzing certain types of musical harmonies, such as the even order harmonics give smooth, rich more pleasing sound and odd order harmonics give edgier more exciting sound.  Also, part of entropy can be measured through the SPL via some methematical algorithm, etc.  

I am hopeful such a matric and process can be implemented in the near future to measure the quality of sound reproduction and help us make an informative decision.  Right now, leap of faith seems the only thing we could count on, whether right or wrong... 

On Youtube? You are kidding.

I have a problem understanding % of sound quality improvement.  Improvement is binary it's either better or it isn't.  Its also personal what sounds better to you doesn't mean I will agree with your assessment.  So if the difference is miniscule the upgrade may or not be worth the bother / money.  So it is a value assessment but the hobby for me is a comparative endeavor.

@lanx0003 the Ares II can sound grainy on the top depending on the o/s non o/s selection, I found in oversampling mode it could be grainy on some tracks, the Pontus is just pure silk, I’d love a terminator but 1 I’d need to lose the wife and too I fear it would open Pandora’s box in the expensive quest to then search out new speakers etc. so for the foreseeable I’ll stick with my wife and the Pontus. 🙂

Same here, especially when I try to revamp two systems around the same time.  I may have a solution for that though, i.e., buy her a more expensive gift. Ha!