I also have my PS3 hooked up to a DAC. The question in my mind isn't so much whether the sound is good or not from this setup, but whether the sound through the Toslink interface running through my DAC and sound system was better than the sound through the HDMI interface running through my TV speakers. In my case, I preferred the Toslink/DAC route.
Sony PS3 Optical Out to a DAC?
Does any one know if the Sony PS3 Optical Out on the rear panel is for an Audio stream. If so, can one purchase a decent quality DAC like the cambridge (sells for $495), use the PS3 as the transport mechanism feed the signal to the DAC and get a significantly better quality CD signal then an equivalent $495 DC player.