I'm not sure of the validity of your information, but as far as liking distortion, my old DC ampped stereo receiver has a total harmonic distortion of ..01%, Most current equipment is significantly higher than this. I think I'm fairly familiar with the comparitive qualities of sound outputs.
SB Live sounds better than the rear sound outputs of a Powermac (which probaly does use an AC '97 codec)..
Whether that's through my Altec Lansing speakers, out of my television, or through my stereo. In all comparisions there is less distortion and noise.