That is correct but has no serious negative consequences. All reasonably modern DACs I’ve tried that support DSD also understand DoP. So, the DAC is still getting DSD data, unlike what happens with WiiM products.
One thing to be aware of is that the volume control internal to the SR11 does not function during DSD playback. This makes sense when you think about it, but it can be a surprise for folks who expect to use it without downstream variable attenuation.