Does balanced interconnect sound beter than RCA?

Yes they do. I own an Integra Research RDC-7 pre amp . Its is truly balanced as it was co designed by Balanced Audio Technolgies. I use Classe Equipment, again a truly balnced design to run the Home theater. Its absolutely no contest.

In a second system I own a Classe CDP-10 . It has a truly balnced output. I run it into a Classe CAP-151 integrated, a truly designed balaced input. The results are devasting IMHO.

Their is alot of confusion on this subject as many if not the majority of manuafacturers that Have XLR inputs are not truly balanced inside the machine . They share and are tied together with the single ended circutry inside.They are not truly balanced, despite having XLR inputs. You really have to dig , I mean dig, to find out which components are truly balanced.
When you do , and you take advantage, The results are outstanding.

Balanced circuits and connectors have been the standard in the recording and broadcasting industry for decades. They are noise and RF resistant, with better grounding, and the positive locking connectors are more reliable and easier to use. If you want to demonstrate the superiority of a balanced system, just try a long microphone line with single-ended circuitry and RCA type connectors. Be prepared for hum, frying sounds, and radio stations along with your music!

I HIGHLY RECOMMEND using balanced outputs instead of single-ended RCA's.
In my system, there was much less noise, the hum was eliminated, the imaging and openness was better, and there was much more gain using the XLR's instead of the RCA's.
I was very surprised at the improvements! And, my Parasound HCA 3500 power amp is not a truly balanced amplifier! It has the XLR inputs, but as far as I know they are converted to single-ended inside the amp.
Results may vary with different components and systems, however.

Buscis2 writes:

The relevance of the provided excerpt was more in regards to an overall factual examination of balanced vs. unbalanced interconnection configurations.

Indeed it was an excerpt - from the Balanced Audio Technology web site. One should identify one's sources or one may be accused of plagiarism.

FAQ - balanced operation

Regards,

Some may find my reply strange. In my experience, balanced interconnects as a group lag behind their RCA equivalents. The majority of manufacurers simply solder on an xlr to their current rca terminated model. Balanced circuits send two signals down the cable. The cable must be designed specifically for use as a balanced cable only. Otherwise sonics will greatly suffer in a high-end system.

That said, when properly engineered. A true differential circuit (4 channels of amplification- ie balanced) has the potential to sound superior in some ways. Most often in audiophile terms. Audible will be the perception of more precise imaging and a larger- more open soundstage. Noise rejection/distortion cancelation results in a lower noise floor- ie more low level detail. Often their is also the perception of less warmth and more "neutrality". I would steer away from balanced tube circuits as they are not precise enough. The effect being phase anomolies and other amusical effects.