Ken - I admire your persistence. I am quite sure nobody else at this point cares about our discussion of DSD vs. PCM in how they are represented in theory or on scope displays. What is more important is how they sound and the implications of their format/representation on sound quality, DSP processing, etc. as I have tried to discuss.
But, to your points, I had to search for this excellent video on PCM, which dispels the stair step idea in the first 5 minutes:
http://www.wired.com/2013/02/sound-smart-watch-this-excellent-primer-on-digital-audio/
Yes, as it says, stair steps are created by sample/hold on displays and also for use internally by DACs. But, that does not change the theory of PCM sampling, which is discrete and instantaneous, and it does not affect the analog output from the DAC in the real world of finite, non-instantaneous time. DSD sampling is only theoretically discrete and instantaneous, too, for that matter, and it must also work in finite time. DSD bits would also look like a convoluted up/down one single stair step in a sample/hold display of the digital bits on a scope.
By the way, having worked with statistical number series, including time series financial and economic data, in the computer world for a long time, I am quite comfortable with a representation of a stream of numbers or magnitudes at discrete time intervals. That is exactly analogous to audio signal and to how it is represented in PCM. I can look at the numbers and understand what is going on, but a graph can be helpful with a very long series.
Sure, I prefer a decimal representation, like in a spreadsheet, but I understand powers of 2 so that I can interpret values and magnitudes in binary, too. A lot slower in binary, but I do not see your point at all about a succession of magnitudes in time for successive PCM samples with signed magnitudes being "impossible" to get any feeling for how it relates to the analog signal, even without a graph, even without a scope, just from the stream of magnitudes = levels=signal voltages. There was also no problem with that in the PCM-oriented video on the scope graphical displays.
If if you are looking at PCM data one bit at a time, rather than a sample word at a time, I can see that you would have a problem. We need to look at it one sample at a time, which is a 16,24,32 bit word typically in PCM. Serial pulse trains are meaningless to me. Why would we look a PCM that way rather than as numeric magnitudes?
It is DSD that is one bit = one sample at a time, which is a totally different ballgame, and the succession of bits, the pulse train, is important there. And, sorry, once again without scope, I do not get any good intuitive feel for the analog signal, its level or even its slope at any point in time from the Wiki PDM examples I previously cited. I cannot look at the succession of bits and figure out exactly at what time the + - peaks or zero axis crossings occur in the analog signal just from the succession of PDM/DSD bits. If you can find a way to describe that to me, great. I d not think it is easy or intuitive.
But, as I said, all this is neither here nor there. It is not what we humans can more/less intuitively sense from the a display of the digital data. We normally do not look at the bits nor do we listen to the bits directly, but only after conversion to analog. All that bit interpretation and conversion to analog for audio is engineered and hard-wired into the audio stuff, DACs, etc., we plug into our systems. That stuff does not care if we humans can interpret the digital bits or not. It just plays the music in either format.