We at Roon are strong believers that bits are bits, however, processing those bits can create analog differences that are very real. In the end, what matters is how those bits get turned into waves.
The DAC’s “first half” is digital, the “second half” is analog. If anything can introduce noise into the “second half”, then even though bits are bits to the “first half”, the output can be radically different.
I’m ignoring clock jitter on the DAC’s input, as that is a solved problem by reclocking with a good crystal (maybe not for all, but Meridian eliminates this issue).
For example, putting a electrically noisy ethernet PHY chip next to your DAC will not make a difference at all to the “first digital half”, but it may destroy the “second half’s” output.
The article mentioned above is noting that processing audio in a “computer” has a bunch of side effects you may not notice. High speed RAM, SSDs, magnetic hard drives, WiFi PHYs, ethernet PHYs, CPU clocks, etc… they can cause problems of varying degrees if your DAC and analog stages are not isolated properly.
UPnP has pros and cons in this regard. There are many issues here, and I’m still begging @brian to write a good post about this on our blog, but I’ll name 1 of each here.
A pro of UPnP is that the clock is owned by the receiver. This is not the case with AirPlay, where the shitty crystal in your computer, which is being bombarded with high frequency noise from everything else in the computer, is driving the signal.
One of many cons of UPnP is that the burden of decoding a complex compressed data stream, which requires quite a bit of machinery, is the burden of receiver. This has many many consequences, but I’m going to leave it to @brian to explain that in his blog post.