I output DSD from my Oppo 105 into my Bryston DAC 3 over HDMI. The Bryston cost me $3K at the time and has gone up.. There were other DACs that had HDMI inputs at the time. I remember an NAD DAC that was cheaper than the Bryston getting a thumbs up from Stereophile
Before I got the Bryston I just used the internal DAC on the Oppo and outputted over the analog output. I seem to be missing something here, as the OP considers using the analog output as unacceptable . Not sure how that violates copyright as any recording made from analog output is an analog, not digital, recording
Of course one an output the HDMI into a AVR, but that is a separate can of worms