This is also due I think to the really cheap 1 bit AD converters used in some recording setups and then the really cheap 1 bit DA converters used in a lot of CD players.

http://sound.westhost.com/cd-sacd-dvda.htm

"The vast majority of A/D-converters used in PCM recording for conventional CD are 1-bit converters with high sampling frequency"

Then it must be better to keep the signal in DSD-format (SACD) than convert the signal to PCM (CD/DVD-A)?

IÖ: Yes, that is correct, but is it relevant question? The CD-system seems worse than it is when used with a one-bit converter. The problem is not the conversion from a one-bit converter to PCM but the one-bit converter itself!

Besides, the one-bit converters used in CD-players usually have higher resolution than DSD, which only samples 64 times faster than CD-system sample rate (i.e. DSD sampling rate = 2.8 MHz). The low sampling rate in DSD is used because of the systems ineffective coding and lack of storage space. By packing the information it becomes a bit more effective but it still is ineffective compared to PCM.

One-bit converters for CD-players often use sampling rates between 11 and 50 MHz. The best one-bit converter probably is JVC's PEM-DD and it is much better than DSD. This said with reservation, I might have missed some even better one-bit technology than PEM-DD. But as far as I know this is the technology that comes closest to true multi bit technology in resolution."