DSD over PCM is true DSD. PCM is just a container for the DSD "payload".
But the DAM also supports "native" DSD.
Both ways of transmitting DSD yield the same result.
But in the end, the DAM will convert DSD to PCM on order to convert it to analog. It has no other choice - it's an R-2R converter.
There are very few dac chips that manage to do DSD without first converting it to PCM, but that has very little to do with how the dac sounds in the end.
Interesting, thanks Dimdim