Digital cameras are a helpful analogy - more megapixels don't help much
once the CCD resolution exceeds the clarity of the optics. But unless
one or the other is overwhelmingly the limiting factor, we can talk
about how they interplay in different scenarios. 

When we say a DAC can resolve so many bits, that is the same as stating
its SNR, just in terms of bits instead of db. Dynamic range is a very
similar concept, defined by the smallest variance in level the DAC can
output that is detectable, compared to its max output level. They're
measured differently but the number is usually about the same since SNR
will be the limiting factor on a 24 bit DAC.


-- 
seanadams
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