Changster, I'm not an expert really, but I've done some reading. Seems Ethernet has some advantages.
First you can have your server far, far away from the DAC (like in another room even if you want). Distance does not affect the data sent, since it's own design is for such an specification. The transfer of data from the hard-drive over Ethernet using TCP-IP ensures the integrity of the data delivered to the DACs. it is easy to configure a totally silence system. All you need to place is the DAC at your rack.
According to Linn webpage, on the subject:
The clock used in the DACs provides the master timing reference to the entire digital path.
It is worth noting that this architecture where the data is pulled from the network using the clock at the DAC is inherently better than systems where the data is transported by SPDIF or USB links, where the DAC has to lock its clock to that at the sending end.
I've read you can achieve this with some short of USB but at a cost. You need your PC or apple near, yo need extra hardware on the computer, configuration an the like.
Also the cost of the cables are important. A Cat 5+ cable is all you need. Even if you want to go Cat 6, these are quite cheap.
Again the above is not from personal experience or particular knowledge, so if anyone knows better, let us know. Personally only have done streaming using ethernet. Now this is very very easy and convenient I can say, and sounds great. Just plug in the ethernet CAT 6 cable into the DAC, turn on your server (NAS or regular PC or MAC, over Linux, WHS or whatever), wherever this is located, and you are set to go.
What I do not understand is why there are only a very limited number of manufactures who do not include ethernet streaming on their devices. For what I know, Linn, Logitech with Transporter and the rest of family, Sonos and not too many more. For sure none of the popular or regarded a high end DAC manufacturers. They seem to prefer any other alternative, you name it.
I wonder if we will start to see these kind of solutions become more popular among these kind of brands in the near future.
Perrew, thanks for sharing your experience. I do think, if the unit from Alex is as good as some claim, looking also at the specs, the fact it can now do streaming wireless and the mods he seems to do, like 10 32 bits DAC per channel of very high quality, upgrades on outputs etc, I would love to have such an upgrade on my esoteric. But the fact you had to wait a full year (WOW) for this to get it done, does for sure turn me down. How could you wait a full year, with the money gone, and I assume your unit also gone and not gone nuts? The Esoteric is 16.000 euros, plus whatever you paid for the upgrade. That is a lot of money to have it on the hook for a whole year while reading all kind of things over the web. I guess it comes down to personal views and perceptions.