Hi RSA -
If you will be using PS Audio, you can only use I2S if you wish to access everything that the PSA transport & DAC will offer. Period. End of Story. This is how PSA designed its components to work.
The SACD handshake will only occur properly using I2S, assuming SACD playback is important to you. Be aware that not all I2S (HDMI) cables are created equal. Also, you will need HDMI, as opposed to HDMI 2 cables.
Follow these rules and you will be rewarded with some very nice equipment and sound. I have the Stellar Gain DAC & Perfect Wave SACD Transport talking to a Rogue Sphinx integrated and Zu Audio Omen bookshelf speakers. I am using an Audioquest HDMI cable. Check out the PSA Forums. Lots of threads on the subject.
Rich