In a word No. The PCM conversion is Not always done at 352.8/32. Often it is done at 96/24 because there are more editing tools at that rate. Will it change in the future? I suppose so. However in a discussion I had in the Audio Hardware Forum last year I posed the question, would PCM sampling at higher rates than 192k lead to something that didn't sound recognizably digital? The consensus was No and that there were serious technical problems in going a lot higher. I myself have heard 192k/24 in the studio before any editing. It sounded smoother than CD but it did not sound qualitatively different than CD. DSD whatever its faults, and they are significant, still does not sound like CD so I have to place my bet with it. Note that the original DSD format was 2.8MHz/4 bit but was changed to one bit for copy protection. I believe the few DSD tools that exist do use 4 bit but only for editing. Personally I think we have to see 4 x DSD / 4 bit to get to something superior to analog in realism but maybe 2 x DSD/4 bit will suffice. Time will tell.