Damn... and I was hoping to find someone had hacked the LED's on the EMpeg to output Toslink.
Definitely DESPITE the marketing pressure, Digital is (for the most part) easy. It either works or it doesn't. It's all ones and zeros and if you have something messed up to the point that the machine can't tell a ON pulse from an OFF... You won't have to worry about distortion, it just won't work.
Of course, time synch and jitter and all that "crap" can come into play, but the last time I checked, even the experts were saying that the only time you'd notice that level of distortion was on a testbed looking EXACTLY for that. Real life, the only people that notice are the marketers. (in the DIGITAL domain)