runeasgar said:
I've been referring to Analog to Digital AND Digital to Analog using the term A/D. A/D converter just means it converts between the two. We probably just have conflicting terminology.
As a side note, generally people use the term for the function they are using, it helps the conceptual picture greatly. "D/A" (or "DAC") means digital to analog. To make things worse you've on several occaisions said that your "A/D" has no "digital" input. Now, I understand you mean to say "My D/A converter has no Optical digital input", but I can also see why so many here have been confused.
Also, the airport express is $130, I don't want to spend an additional $300 - whatever dollars getting ANOTHER converter to SPECIFICALLY work with the airport express. Optical in is used for speakers, very rarely is it used for A/D|D/A converters, and that's what apple intended it for, direct input to speakers.
Unfortunately, that's the age we live in. Home theater buffs have been living with this for quite some time: you either buy all optical, all coax, or you buy converter boxes when necessary. At $50-100 per box, they aren't cheap, of course. If you're a real cheapskate I believe the parts are more on the order of $20; you can find the wiring instructions several places online. But, that's the age in which we live.
As for Apple's choice ... well, I think they had a pretty much 50/50 shot at hitting the target here. Most home theater receivers (ie, what the non-audiophiles tend to use) have an optical input for the CD player, which is conceptually what the AE would replace, and most have a coax for the DVD player. Given that minidisks (again, another likely device AE could "replace" in a setup) use optical outs, and that Apple could buy a single port to handle both digital and analog output so long as they used optical out instead of coax out, and that coax out by itself is a kinda ugly port

... and I can certainly see why Apple went on the optical out side instead of the coax out side.
It all comes doewn to this: is the AE functionality worth $200 to you (cost of AE plus an Optical/Coax digital conversion box)? If it isn't ... well, then I guess it just isn't, but you don't have a great deal of room to complain.
The airport express doesn't take external or alternative A/D|D/A conversion into account anywhere. The fact that a very small number of good D/A converters accept digital in is more likely a coincidence than intentional.
Again, you mean optical digital inputs.
However, saying AE doesn't take external D/A into account when it explicitly outputs digitally is a bit silly. Of *course* it takes external D/A into account; otherwise, what are you going to do with that toslink port, hook it up to some fiberoptic art piece and watch the pretty colors? It just doesn't take *YOUR* D/A into account.
As for "a very small number of good D/A converters accept [optical] digital in" ... is that really true? My impression was that it was about 50/50 ... but I'm not an audiophile so I don't follow it very closely (just yearn for the day when one or the other is accepted as the standard so I don't have to worry about it when I buy a DVD or CD player ...)