DSD64 is not necessarily bad, but it puts extra demands on the DAC side. Just like 44.1k PCM puts more demand on the DAC than hires.
In many cases DSD256 is the sweet spot, but some DACs perform nice at DSD512 and DSD1024 rates too. Some older DACs are limited to DSD128 which can be pretty good too.
Biggest step in performance is DSD64 → DSD128 and then not quite, but almost as big DSD128 → DSD256. Then smaller steps to DSD512 and DSD1024.
DSD64 as content delivery format is still better than RedBook, as it doesn’t suffer from digital filter artifacts and such. And with suitable upsampling it can produce pretty good listening result.