It's the framing error on a UART model that I have in mind for this data transfer too. Maybe that's the wrong mental model, and when I get the right mental model it'll be clearer to me. Certainly, one problem with digital audio playback is that these connections don't have redundancy built in (ie, no retry logic). However, I can connect two computers up via async ports (ie, UARTS) and write a simple program to send on one side, receive on the other, and report any chip-level errors, let it run for days and not see a single error, all without retry logic, etc. So, it still seems very solvable, at least to my level of understanding of the problem set.
I guess another way I think of it is this - what if somebody re-engineered the concept of a CD transport / DAC combination such that the transport didn't attempt to play it back real-time, but rather read the CD "in" and reliably loaded it into memory on the DAC. This would be akin to reading a computer CD into memory and, since you'd be re-engineering the interface, could base it on different technology. Then, the "CD" would play back from within the DAC's memory. I would think the whole issue of jitter would be moot with such a setup, and the whole notion of an expensive transport and expensive interconnects would be moot as well.-Kirk