I'm considering using an XBox 360 to stream audio to a hifi 2-channel system (through the optical out). For sake of argument, lets say my audio setup is a Peachtree Nova powering a pair of B&W 805S (aka a nice DAC to a set of very nice bookshelf speakers).
I know the XBox 360 upscales all audio to 48 khz. Will this upscaling affect the "listening" experience? Do you think I'll be able to tell the different between the XBox versus a system that natively supports more audio formats (ie Sonos or Squeezebox).
The same question applies to AppleTV. It upscales everything, but it's a pretty sweet package for $100.