OK, but what if all the music I listen to is 16 bits? And what if not all my sources are digital? You can't produce dynamic range that don't exist, and while it may be true in most cases, in the end it's still all about gain structure, and the problem is that sensitivities are all over. The most transparent DAC with digital volume control in the world can still present audible hiss if the gain downstream is not adequate for the transducer you are using, in the end everything must be viewed as a system working together. Nothing against digital volume, but again, benefits and compromises.
Why is 16 bit data an issue? A 32 bit DAC (or DSP) will happily attenuate 16 bit with essentially no quantization error for the vast majority of attenuation levels. Here is a digital measurement of a 32 bit DSP with a 1 kHz 16 bit input with 35 dB of attenuation, there is no quantization error and we maintain -96 dB THD+N. The limiting issue here will be analog noise from the DAC / amplifier and not quantization error from digital volume control.
I've used DSP in all my systems since my first forays in to car audio 15+ years ago so I have no issue with digitizing analog sources and these days ADC quality is so high I am quite confident that it will be nowhere near limiting compared to the analog source.
I agree that sensible gain structure is a prerequisite and unfortunately it is something that is often ignored. However I can assure you that I have very good understanding of the residual noise requirements at the speaker terminals to avoid speaker hiss with the speakers I use and it can be achieved with relatively middling pro audio DACs and Hypex / ICEPower amplifiers, see this thread for more info -> https://www.audiosciencereview.com/...m-china-with-topping-performance.24768/page-2.
I just don't see where this device fits in a modern world with digital volume control and low noise DACs, especially at the price.
Michael