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If the inserts in the master fader were prefader you couldn't dither to 16bits because, although the signal in the output of the plugin is 16 bits, it would be summed with the 24 bits dither added when the signal left the bus and you would have again a 24bit wordlength that would be truncated to 16bits without dither.
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I mean "If the inserts in the master fader were predithering..." not prefader.
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Not that I disbelieve you, but this doesn't seem to matter. If you used a plug-in to dither to 16bits and then that were lengthened to 24 bits and then chopped back down to 16--wouldn't you end up with the same dithered 16 bits?
So...double precision plug-ins all dither their output to 24 bits? The double resolution is only internal to the plug-in? So every single time you instanciate a plug-in you are dithering? Never mind...I just checked the white paper and it is so. Well, I guess I shouldn't be surprised. It's not as though the 48 bit precision can give you more resolution than the 24 bits you started with. That resolution just keeps us from losing resolution during summing and processing, if I understand correctly.
To clarify: the TDM bus is 24 bits. The 48 bit resolution only comes into play during summing and processing inside double precision plugs and exists in order to preserve the 24 bits we started with from end to end, yes?
Dave