Bifwynne - the Sony product discussed is basically a CD/SACD player that uses computer files rather than disks. It works with standard CD computer files (16bit/44.1 KHz) as well as higher rez files like 24 bit/96 KH, 24/192KHz like DVD audio used. It also reads SACD files (DSD - 1bit/2.8MHz) and double resolution DSD (1 bit/5.6KHz) files. DSD format is becoming increasingly popular with the hi rez crowd, although there is little currently available in that format. The unit will convert LCPM (like CD, 24/96) to DSD. Some people think the converted DSD sounds better. HI rez LCPM files have become pretty common, but DSD files have not been, partially because it has always been very hard to rip SACDs and because DSD DACs are just becoming available.
In PC audio terms, it performs the tasks of a PC, a PC player (like iTunes, foobar, J River) and a LCPM/DSD DAC.
It might be a good solution for a novice hi rez person, if there is such a thing. For current computer audiophiles, my guess is they will stay with the flexibility of different software players, different DACs, different OSs, etc. You can do the same functions as the new Sony with, as an example, a Windows PC, J River Media Center software and a Mytek DAC. Some people will find the integrated unit useful. The Mytek DAC is $1,800 if I remember correctly, so the $2K price is in line.
Somewhat long winded, but hope that helps.
