Talos - I believe you may be missing the point. In my system, to me and everyone I have ever had listen to it, DSD sounds so much better than PCM that it is not even a contest. With DSD, the soundstage is soooo much larger, the details soooo much more present, transients soooo much more forceful, the sound soooo much more "natural," that I often wonder why the "debate" over PCM vs. DSD even exists (between audiophiles...) Have you ever A/B'd PCM vs. DSD recordings (I know, it is difficult to know what the original master is and etc., etc., etc.)?
I have multiple versions of Dire Straits - Brothers in Arms (which, interestingly, I understand were made from a PCM master) including the DVD audio (high-rez PCM), the XRCD (16/44 PCM) and the SACD. The SACD is hands down superior in every way. Similarly, I have multiple versions of CCR's hits including high-rez PCM and the SACD is so much better that it is almost laughable. I am 100% confident that anyone listening to my system would come to the same conclusion and cannot even fathom someone preferring any of the PCM versions. I stopped comparing a long time ago due to the landslide supremacy of DSD. Without actually knowing all of the technical details/differences between the formats, I believe its superiority has something to do with the time domain as it is really the "natural" sound signature that I believe sets DSD apart and makes ALL PCM (including 24/192) sound digital in comparison.
My recommendation: Buy a Sony SCD-XA5400ES SACD player and compare SACDs w/the redbook layer and make some DSD discs from some DSD downloads--I would be curious to see if your opinion changes. This player has been hailed for not only is SACD performance but redbook performance as well; however, on dual-disc SACDs, the PCM layer was miles away from the SACD layer. While I wish that PCM were as good as DSD due to the fact that 95%+ of my collection is PCM, I am still searching for a DAC that can rival SACD and doubt that I will ever find one. I am waiting for more DSD dacs to come out and the availability/re-release of more DSD downloads.
As far as a sustainable advantage, I believe it is the vastly superior sound quality of DSD that COULD make it the future of digital. But I suppose you could always ask why it has not "caught on" after 10+ years of existence...Quite frankly, I am shocked that it has not taken off yet and can only conclude that not enough people have had a chance to experience DSD on an adequate system.