In reality, this is all that's important.
I would say, if a) is fulfilled, then it's "fair enough". Not supporting it at all is certainly not okay though as it is violating the CD standard (Yes, Topping. Talking to you!).
We are talking the coaxial and optical interface and 16/44.1. What comes via USB is too unknown.
I agree, but like RME shows, it's a nice optional feature to have. Also, it has the advantage that one can leave the files unaltered and still have it right.
b) would be a feature which is mentioned in the manual then or visible in some menu and thus nothing which has to be trial & error - tested like a) so it should be something quicker to be verified
If we are talking 16/44.1 and sources derived originally from Compact Disc, how many of those people will be using an external D/A converter in the first place?
One might use some mobile phone or laptop and use the DAC combination for the better/more powerful headphone output. Other then that, I'm also pretty sure that the direct DAC path of that source would suffice.
I know I don't. All my CDs are played on dedicated, high performance standalone CD players.
Well, it's quite eccentric and "spleeny", but one could come up with the idea to hook up a crappy internal PC CD drive with S/PDIF output to a DAC just to prove the point that the quality is entirely determined by the latter and not the drive of course, but yeah ...
Except for that, maybe some CD players have the sub-optimal and a bit too high headphone output impedance where again a DAC/headphone amp combo might be slightly better for reasoning.
I agree that the whole concept of external DACs is somewhat a bit a solution looking for a problem (beyond the voodoo claims of course where jitter is always the major problem, internal DACs of sources crap by definition, etc.)
What interests me more, is how much of the content (streaming etc) people are listening to, which has ultimately come from compact disc sources in the first place, is incorrectly encoded (PE) or simply isn't having the appropriate de-emphasis applied while being listened to.
Thinking about lousily mastered Blu-rays where they sometimes took the former DVD masters of PAL regions which have been pitch-adjusted after speedup and then slowed down again for the 24fps release, resulting in too low pitch and other crimes, I guess this is a hornets' nest.
Also reminds me of the constant confusion with DTS for movie and for music playback where the latter I think doesn't require the 10dB boost while the other does and LaserDiscs here and there where the LFE allegedly has been boosted too much ... or the CinemaDTS CDs ran in cinemas where they also changed the mastering standard of LFE levels on later releases ... it's always a nightmare when things aren't properly documented on the media. At the end, it's guessing what is intended now.