I don't understand the point about saving space by eliminating the DAC. At the end of the day, to produce sound, we need a DAC. So there will have to be a DAC somewhere. How is creating bigger dongles "saving space". The users have to carry bigger accessories.
It's like Intel's Skull Canyon mini-PC. They miniaturised the PC but the power supply is now nearly as big as the PC. What's the point of shipping a mini-PC with a humongous power supply?