DSD is converted to "DXD" PCM resolution traditionally for editing. It is currently impossible to add effects or edits to a RAW 1 bit file stream, so even super expensive editors rely on PCM conversion. Pyramix, for example retains the DSD resolution for sections of audio that are not affected by an edit, retaining as much of the original format as possible.
The truth is, unless all the effects were handled in the analog domain without editing, every single SACD release has been converted to PCM at one point.
DSD isn't exatly "smoother" than PCM, which, when converted back to analog is a perfect waveform, exactly what came in. DSD uses a super high frequency carrier wave much like FM radio to piggy back the audio signal as a modulated sequence of 1's and 0's. It avoids a few pitfalls of PCM such has harmonic "ringing" on fast transients, but it also has its own noise and distortion issues. One is not really arguably better than the other. DSD is the format for Super Audio CD's which is copy protected and extremely difficult for a customer to play on non-specialized equipment. Great for major labels, and not a problem for audiophiles.