On the average the error on the lsb is 50%. Even if it were 100%, and for certain samples and converter architectures it may be, that's an error of 1 part in 65,536 for a 16-bit DAC, still 96 dB below full-scale, so I am not at all sure it is audible. It's kind of like dithering the noise floor. Which all delta-sigma designs do anyway so would mask this error.
1. With reference to full-scale I think 1 / (65,536 / 2) may be more correct as it is only the negative samples that is affected.
2. As the normal (average level) is maybe 20dB down from full-scale and the frequency spectrum normally slopes down with 6dB/oct in level from the 20Hz (bass area)- then the error / distortion level will be more dominant as the frequency rise than the otherwise "worst" component- the speaker drivers- the higher the frequency the more dominant the error / distortion will be- expect that 3kHz and up are where the real sonic impact hits.