Sean - Transmission-line effects are the main concern with digital cables. Characteristic impedance matching is a big part of this. However, dispersion of the digital signal is also caused by dielectric absorption, which can cause jitter, so just matching to 75 ohms is not sufficient to minimize jitter.
"Shouldn't a cable that has a higher velocity factor be less prone to signal deterioration / absorption due to the signal spending less time in the cable ?"
There will generally be less absorption in a high-velocity cable because in order to get high-velocity, you need a low dielectric constant. Low dielectric constant results in lower capacitance and lower dielectric absorption. The time that the signal transits the cable (propagation time) is really of little consequence itself. This will obviously change depending on the length of the cable. The rise-time of a SP/DIF signal is on the order of 20 nsec, so you would have to have 100 feet to equal the risetime. Technically, this makes impedance a non-issue for a 6-foot SP/DIF cable. However, in practice, impedance discontinuities do impact the sound, particularly the image focus and detail, by adding to the jitter.
As for dielectrics, PVC is at the bottom, getting progressively better with foamed poly, solid Teflon, foamed Teflon, expanded Teflon and finally air. I use Expanded Teflon in my Digital cable. It is hard to put a percentage on the improvement without measuring it. I have plans to purchase a Tek CSA803 communications analyzer, which will measure jitter accurately to a few picoseconds, so I will eventually be able to measure this.
"Shouldn't a cable that has a higher velocity factor be less prone to signal deterioration / absorption due to the signal spending less time in the cable ?"
There will generally be less absorption in a high-velocity cable because in order to get high-velocity, you need a low dielectric constant. Low dielectric constant results in lower capacitance and lower dielectric absorption. The time that the signal transits the cable (propagation time) is really of little consequence itself. This will obviously change depending on the length of the cable. The rise-time of a SP/DIF signal is on the order of 20 nsec, so you would have to have 100 feet to equal the risetime. Technically, this makes impedance a non-issue for a 6-foot SP/DIF cable. However, in practice, impedance discontinuities do impact the sound, particularly the image focus and detail, by adding to the jitter.
As for dielectrics, PVC is at the bottom, getting progressively better with foamed poly, solid Teflon, foamed Teflon, expanded Teflon and finally air. I use Expanded Teflon in my Digital cable. It is hard to put a percentage on the improvement without measuring it. I have plans to purchase a Tek CSA803 communications analyzer, which will measure jitter accurately to a few picoseconds, so I will eventually be able to measure this.