The debate between optical and co-axial is an old chestnut around here. Only speaker cables (and, latterly, HDMI cables) raise more debate.
Here is my 2 cent's worth though.
The source material is either going to be optical (in the cases of CDs, DVDs or Blu-Rays) or digital in the form of computer files, data streams, whatever. Every time the signal gets translated from optical to digital or digital to optical, there is the chance, however small, of an error.
So if you start with a CD (for example), in a CD transport linked to a separate DAC linked by an optical cable, the signal goes:
CD > CD Transport Optics > Optical > CD Transport Digital Electronics > Back to Optical > Optical cable > DAC Optics > Back to Digital Signal > DAC Electronics > Onwards
For an electronic or co-axial interconnect the signal goes:
CD > CD Transport Optics > Optical > CD Transport Digital Electronics > Co-Axial Cable > DAC Electronics > Onwards
So, by using a co-axial cable you've saved the digital electronic signal from being converted back into an optical signal back into a digital electronic signal. That eliminates two potential sources of errors.
For a digital electronic source, such as a FLAC or WAV file, a data stream over theinternet, whatever, the process is the same: to transmit over an optical cable requires the signal to be converted into an optical one, then back into an electronic one. So, again, by using a coaxial cable you eliminate two conversion processes and the chances of an error should therefore be reduced.
All that having been said, I can't hear the [expletive deleted] difference either and its as much down to personal choice, the equipment you use (and what sockets the boxes have), and the converters and connectors as anything else.