The Mojo article I posted seems to say the opposite, and that DSD increases modulation noise. I have no idea of either is true as concentrate on Redbook or 96K in an R-2R. I will get to hear the Lampi GG later this spring, so am open minded about the subject.
Of course, Mojo know about DACs more that me.
1. As rule, modern PCM DAC contains both DSD modulator and demodulator for easier implementation.
2. Modulation noise is a complex issue. It depend on used sigma-delta modulator first.
The modulator should push energy of the modulation noise to higher frequencies as far as possibly.
Other hand it can decrease stability of work of demodulator (modulator's feedback loop issue).
Easier implementation of these conditions on D128 and higher.
3. Second, 1-bit modulated signal should be deep filtered at higher frequencies.
As example, in my software I applied 3 kninds of filter by cut edge (band): 20...24 kHz, 20 ... 27 kHz, 20 ... 100 kHz (depend on input and output sample rates).
I recommed use 20 ... 24 kHz cutting. But some people more like maximal 20 ... 100 kHz.
I suppose it may depend on implementation of playback tools.
DSD64 is most critical for filtering. 20 ... 27 kHz and 20 ... 100 kHz cause very significant level of noise at such bands.
However, all this noise placed in ultrasound. It may be listened for some apparatus due non-linear distortions (intermodulation products in audible range). Also it consume part of useful dynamic range.
DSD128 have lesser level of noise for 20 ... 27 kHz and 20 ... 100 kHz bands.
DSD1024 fine work in 20 ... 100 kHz band even, as I remember.
Resume:
Modulation noise in demodulated signal depend on DSD sample rate and implementation both DSD modulator and demodulator.
4. Resistor DAC is too complex for implementation. Because for achieving DSD's demodulator precision there need very high precision of used resistors.
Some time ago I calculated it and got some currently unreal precisions. But I claim nothing, because don't remember these figures.
Also there may be resistor's temperature stability issue.