Hi, I can understand why you're confused... to be clear, the sound of the G08 using analogue outs into the 568 analogue in's (yes it then converts AD then DA) sounds a fair bit better than if the G08 digital out is send to the 568 digital.
So, to me its better going from the D>A>A>D>A rather than D>D>A... I can offer no firm explanation as to why this is the case but there is a distinct difference in the sound.
The only real reason I can offer is that the G08 DAC when converting 16Bit DAC is better than the 568's... but also the 568's ADC is pretty good!