PO,
Regarding DSD and DXD in recording studios as a format the jury is still out. I think the ability to manipulate that amount of data has many technical problems today. Many manufactures do not support it (hense my above post) and have no immediate intention to support it. So to use DXD is difficult impractical and expensive for most studios. Obviously that will change if it becomes more widely used.
The guys that are using it, as I mentioned, are remastering/mastering guys. So the multitrack and stereo master are recorded using the usual suspects. Its only the end stages of the production process where DXD or DSD may be used. Live recordings could be different be even these are recorded via multitrack mainly so unlikely to be what I would call "real" DXD. I.e used through out the whole process rather than just at the end.
There are those who say 192k is fine and those who say DXD is the first recording format to COMPLETELY DISAPPEAR sonically.
But as no one can really deal with it, what seems to be happening is engineers are bouncing between analogue and digital to make it work. I.e playing the output of the DXD capable DAC up the mixing desk manipulating in analogue then rerecording those manipulations back to digital!
It's a bit of a mess and while there are some amazing sounding pro AD-DA DSD DXD capable processors, how they integrate with standard studio equipment is a hassle for now.
I hear Linx are about to release a pro soundcard which is compatible and "cheap". But I have not seen it.
One day if it can be used all the way through the process we will have the finest recordings in history. But in a climate where there is no money to be made from music, it is unlikely many will retool at vast expense on the pro side to adopt it fully. (mastering aside)