This is absolutely true. Paul said many times at first that DSD 64 was more than enough as, purely coincidentally I’m sure, PS Audio products couldn’t handle more than that. Now that the product can handle up to DSD 256, that is suddenly the new sweet spot.
I preordered the PS Audio Air Lens hoping to push some DSD 1024 files I have and see how they sound. I’m disappointed to see in the Air Lens spec that it will support only, you guessed it, DSD 256. So Paul is building the PS Audio ecosystem around DSD 256.
Right now I’m using ASIO USB drivers on a Windows notebook to push DSD 512 files to my DAC. Although it is a subtle difference, I do indeed notice a difference and I prefer the DSD 512 files. They seem ever so slightly richer.
My Macs, of course, can only push up to DSD 256.
Someone mentioned file size as an issue. I just read where Seagate should release 20TB drives this year and 50TB drives by 2026. Most everyone has 1Gb ethernet and most new PCs come with either 2.5Gb or 10Gb ports. I copy my DSD 512 files and lower resolution DSD and PCM files to my iPhone 13 and play them directly with the free version of VOX. I have approximately 1TB of music files so not all of it fits on the iPhone. But most of it does and for a portable device that’s not bad. And now there is ROON ARC for the rest.
I agree with everyone here that thinks ripping a CD to a DSD doesn’t make much sense. I’m happy with AIFF.
I wish people would be more clear when they talk of streaming. Yes, most commercial streaming services over the internet use either lower resolution or compressed file formats. There was a great YouTube video a couple of years ago where someone uploaded master files to Tidal and when he downloaded them again they had been altered. When he approached Tidal tech support to make sure he was doing everything right at his end, Tidal’s response was to cancel his account. I stream. But I stream from my own files on my own fileserver. So please be careful how you throw the term streaming around. When you use ROON, you’re streaming, even if the files are stored locally.
I hope that doesn’t sound too harsh. Black type on a white background can do that. I’ll beg my apologies as I seem to have caught a nasty tummy bug that kept me up running to the bathroom all night. I don’t mean to be harsh, I’m just mostly brain-dumping. I hope everyone will understand.
One last thing. With respect to digital versus analog. If you believe in quantum physics then there is no such thing as analog at all. The shortest distance isn’t zero length but the Planck length. Similarly the highest sample rate is based on the Planck time. At what point does the quantized (digital) world become analog? We, as humans, don’t notice Planck-scale things. To us it’s all analog. But similarly there is a case to be made that at some point long before we reach Planck-scale values, the digital approximation is so close that humans can’t tell the difference. So when Paul argues that digital can be better than analog, you have to ask, what is he really saying? It seems to me that he is arguing that current technology finally allows us to reproduce sound in ways that create a better analog experience. While that may sound counter-intuitive, it doesn’t mean it’s not true.
To help put my thoughts in perspective, I turned 60 last year. So I’m not some technical whiz kid that disrespects more traditional ways of thinking. Ultimately what I think doesn’t matter. It’s what you think your ears tell you that’s important and it is very likely that your experience is different than mine. And that’s ok. 
Thanks,
David.