I think RDC's experience is atypical. I used an XP computer to AE with absolutely no streaming problems. I don't know what happens enroute but the data from the AE is not compressed.
The reason most say that AE route is inferior is that the AE data has a relatively high amount of jitter. If your DAC can handle the jitter then data is data and a jittery toslink data from the AE will be the same as less jittery USB data. I used one with an Altmann DAC which has circuitry to deal with the jitter and it was superb. I would assume other DACs that somehow reclock or deal with the jitter would be fine as well.
The AE cannot output audio data via the USB port, only via the toslink or analog out.
The reason most say that AE route is inferior is that the AE data has a relatively high amount of jitter. If your DAC can handle the jitter then data is data and a jittery toslink data from the AE will be the same as less jittery USB data. I used one with an Altmann DAC which has circuitry to deal with the jitter and it was superb. I would assume other DACs that somehow reclock or deal with the jitter would be fine as well.
The AE cannot output audio data via the USB port, only via the toslink or analog out.