Those excerpts you have opportunely selected illustrate the main issue with this 2001 article, which still regularly pops up whenever the phrase "1 bit" is employed on audio related Internet webpages. The non-technical lexical field about feedback the authors use in these excerpts says it all. The title is enlightening all by itself : "
Why 1-Bit Sigma-Delta Conversion is Unsuitable for High-Quality Applications". There is obviously an hidden agenda behind the technical discussion.
This article was part of the "Format War" between SA-CD and DVD-A at the very end of the '90 and the early '00s. At that time, both camps, on the one side Sony and Philips (and some others : dCS, Sharp) and supporters and at the other side Meridian, Matsushita/Technics and others and supporters fought with each others through AES papers in order to convince the potential professional clientele to choose their system proposal rather than the proposal of their competitors. Fair enough.
The response of the DSD camp at the very same 2001 AES convention was not much different that the above infamous Lipshitz and Vanderkooy paper:
http://tech.juaneda.com/en/articles/dsd.pdf
So, the statements in those kind of paper must be taken with a pinch of salt and, at the very least, been properly contextualized.
And the world has moved on since 2001.