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The new Sony Walkman costs more than you think, here's why
(www.slashgear.com)
This is a most excellent place for technology news and articles.
I think the article is just incorrect. Sony probably means it can just decide .dsf files. And you are confusing 1 bit DSD with 16 bit PCM. The most common DSD format is DSD64 2.8Mhz which is equivalent to 16 bit /176khz, 24 bit/117khz, or 32 bit/ 88.2khz. And the microphones and instruments do work at these high frequencies.
No, the product page mentions the "DSD Remastering Engine", which says the same thing as the article. They probably just mean they're using a 1-bit DAC, and are trying to pass that off as a selling point. Although the article did lose the "1-bit" part.
Then I stand corrected, although the article does conflate DSD decoding with The "remastering engine". Just cause it can decode it doesn't mean it can resample PCM into DSD. Those are 2 seperate features.