Am I to understand that this is just 1 DAC, capable of a single audio channel of output?
That was a little bit misleading, actually it's one stereo DAC IC containing two separate DACs, each for left and right channel.
If it is DMA driven then why does the CPU need to do mixing?
Because it supports only one (stereo) channel. To off load the CPU we need more hardware channels. It's really frustrating to see the CPU fully loaded mixing four audio channels with decent rate when the same job can be done by Paula with almost no CPU load. Definitely we need more hardware channels.
This is hardware mixed in FPGA code, correct?
Yep, the four Paula native audio channels and two 16-bit ones are down-mixed in hardware.