IMO current DAC's will be redundant in 5 years, not because of better
DAC's, but because of digital amplifiers.  Squeezebox will most likely
have an (optional) integrated digital amp.  Digital amps will also have
HDMI inputs, which will support copy protection (HDCP I think they're
calling it).

As for frequency response of CD's, the problem of limiting them to
44kHz sample rates is the extreme filtering required to remove
artifacts above 20kHz.  Oversampling does this filtering in the digital
domain.  Upsampling (per my understanding) allows some artifacts
through. e.g. 44kHz upsampled to 96kHz will create artifacts in the
20-40kHz region.  It will then be oversampled to get rid of the higher
frequency artifacts.

This may sound better for the following reasons - firstly, it moves the
harsh filtering futher away from the audible region, secondly, the
artifacts approximate energy that was originally there, and whilst we
can't hear this directly, it may affect our perception of sound below
20kHz.

EDIT: probably more importantly than either of the above 2 points is
that the artifacts introduced by upsampling help to 'even out' errors
in the DAC.


-- 
bludragon
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