-The signal goes through additional signal processing, converted from voltage by the DVD player, into an otical form for transmission, and then back into voltage by the processor. (considered a disadvantage by most)Here lies a MAJOR misconception - that the coax digital signal is "pure" compared with a "converted" optical signal. The SPDIF signal in a coax cable is a modulated bitstream. The optical signal can be considered as being modulated but at a much higher frequency (light).
The jitter arguement against optical cabling can be turned around on to the coax cabling too - a coax cable that is out of spec can have enough capacitance to smear the transitions to create jitter.