You might be onto something. Then again maybe not.
What has sometimes happened in such comparisons is an example of just how powerful our eyes are over our hearing. A good story, a great built, beautiful device, and us knowing which is which and one unit seems to sound so much better. Beyond simple transparency and adds something more. Or so the story goes. Then if the identities are removed said wonder device is sometimes found to simply be inferior with a sound of its own added to real fidelity.
Now mind you I've see it go the other way too. The difference was heard, and preferred over simple fidelity.
My actual expectation for the Yggy vs some other good DAC is blind it will not be detectable. Without the story, the knowledge of the price and reputation, it will fair no better than another cheaper better measuring DAC. While it has its measured faults, I don't know if they are all that audible. I would expect not.
We've read of the Circle of Confusion in loudspeakers. We have something of a circle of confusion of the opposite extreme with regard to DACs. Mostly if FR is flat they all sound the same even though we can measure differences. The confusion is where an inferior measured performance
I'm not much in knowledge of scientific research results. I read hear and there about some general conclusions, so I might know this or that but I never directly studied those. From what I understand, it's the profile of distortion that can make it generally sound worse, not change much, or sound even nicer. Aren't tubes the perfect example? They generally have a higher distortion than a correct solid state design, yet it's the profile of distortion typical to tubes which sounds more pleasing than a profile of distortion typical to a solid state. If we describe high fidelity idealistically as the truth and distortion as a lie, then both tubes and solid state lie, where tubes typically might lie more...however they use pleasing lies, while solid state uses harsh lies.
Now the question is this: do listeners like more the truth, or pleasing lies? It would be much easier to answer this if we had a system which completely tells the truth. However no such. Lies may be to a lesser degree as systems designs and components used get better, but every system lies to a certain degree. So we don't know for sure whether truth is pleasing enough, or some beautifying helps to make it sound better. But in realistic world...it's a type of lie that might decide the outcome, and it's quite possible that bigger but pleasing lie would be assessed by listening panel (blindly, of course) as sounding better than smaller but harsher lie (to 'ears').
Now as with Yggrdrasil...I don't think what shows in measurements as being bad (namely, issues recognized by Amir like power supply noise leakage, or a faulty USB clock at 1.008 Mhz) are what was intended by its design, or something which was done on purpose to create a more pleasing to the ear kind of distortion. Looks like me more like design flaws which originate from cutting production cost (which is very bad for a digital device costing as much. I don't see justification). Now, as for not using dither in 24 bits format and going for rounding bits...this is possible that Schiit designer thinks it creates a more pleasing to the ear result. From my point of view, it's not impossible. After all, a decent designer should ensure listening tests during development phase in which listeners can evaluate different implementation ideas, so quite possible that dither vs no dither (in different combos like truncation or rounding) was tested through listening, and no dither was picked as one which was voted to sound better, even if it doesn't measure better.
Generally I think Amir made a great job in exposing weaknesses of what looks to be an overpriced product. It's great to tell the truth. But from the objectivists vs subjectivist side, I'm actually more interesed in Topping DACs and how are them when it comes to pleasing sound. If I listen to objectivists they will tell something like 'it measures better...of course it sounds better!', however that assesment didn't come from their ears
if it's what they hear as well, it might be the truth...
however, what they hear might be biased as well because of measurements result influence. You're told what to hear, so you hear it exactly like this...right?
Bias is a two sided blade.
This is why I tend to believe my own ears the most. Of course I'm not immune to biases. However as long as they are mine (biases), I can battle them myself. And there are situations where there is simply no bias. For example, same musical chain, everyhing the same including laptop PC instalation and kernel and setup, parameters available set to the same values...the only difference, two different SW player. Environment was Audiophile Linux, non rt kernel, direct ALSA on both. I didn't hear anything previously on any of them from anyone, and for what I know, both were chosen to represent audiophile players by AP Linux distro designer. So both should be good. However, they didn't sound the same, and I was able to recognize and describe the difference. Mostly, one of them (DeadBeeF) handled highs better, with more subtlety and reality, even a bit better resolution. Sound was milder and more pleasing but with better realism. So, if there's no bias and one was obviously more pleasing to me, then the difference is real, I guess? Also, there are other situation where bias tells me one thing, yet I hear something different. The same example environment: the AP Linux author convinced that RT kernel session was the better sounding one because of minimum latency. This is what I expected to hear. This is not what I heard. It was actually clearly audibly harsher, and I wondered what the AP Linux author heard when he thought it was better. Anyway as for examples: as long as I keep hearing things differently to what my bias should tell me, or am able to hear difference in sound (and also locate and describe the difference) in a situation where there is no bias like price, brand or comments of others (read or heard), I don't have a reason to doubt that I do hear something real. Now, whether that liking comes from better fidelity or a more pleasing lie, that is less concern to me - I cannot command to myself what's more and what's less pleasing to hear to me, it's just what it is. What's beneath is less important to me, as I'm not an audio gear designer, I'm just a consumer.