Chord’s DACs are “galvanically isolated”, and my DDC made a massive (audiophile massive) difference, but, like, anyone would notice on a reasonably transparent system. Again, it’s not just bits. Bits are transferred via an analogue signal that represents bits, and I don’t dispute that the bit representations almost always arrive perfectly, but it’s about the other junk that rides along with the analogue signal carrying the bits.
Not all galvanic isolation is perfect (even Rob Watts has said as much to me), and digital cables and sources absolutely matter. It may matter more or less for a given system, but the changes can be quite obvious in some setups. I have heard that the Holo DACs have an exceptionally good USB implementation, so it may matter less for you.
Anyway, I don’t think most people are making a bits perfection argument for the audiophile routers. Some are, but I agree that’s demonstrably disprovable.
It took me a minute to dig up, but Hans Beekhuyzen has an excellent, well-researched video on the topic. I generally agree with his philosophy, as he is listening first, measurements second, but is very knowledgeable about the technical aspects of the audio chain. He actually worked with a fellow enthusiast, and they seemed to be able to show an objectively measurable difference in jitter and phase noise with and without a network filter. I will reiterate that I have also heard a difference with a much less advanced network filter.
I don’t have a CD transport, but I was extremely annoyed to find that local files sound noticeably better than the exact same streamed file. It’s not huge, but it’s enough that I now buy and download my favorite albums to store directly on my NUC.
So, to sum up, I’m on team “bits arrive fully in tact, and most are re-clocked at the DAC”, but I think that is not the full story, and is missing a massively important factor - signal contamination that moves through the chain and causes (minor) distortions in downstream equipment that are audible.