I didn't forget, I just regarded it as a subset of the DSP feature. Of course the DAC was a separate component, but it was the DSP that gave it the capability to do multichannel audio playback at CD quality.
Not sure it was that easy to fix, it can't have been a decision their hardware designers were thrilled about releasing it in that configuration in the first place.
By the same token, the shortcomings of the A1200 were easily remedied by 3rd party expansions. It's all a question of how much you're prepared to pay for it. I'd but an 060+PCI (RTG, soundcard) A1200 up against an equivalently clocked 060 Falcon with it's out-of-the-box hardware any day.
And you would be in the minority and C= would still be going bankrupt in 1994. Point is such an A1200 would have cost more than a faster PC, which would have had a decent web browser and TCP/IP stack via Windows too and 24bit colour, lightning fast (for 3D games) Pentium and 16bit stereo sound. People never get their money back on add-ons...not alloy wheels for cars or accelerator cards for Amiga. Bad bad business plan, I actually refused to buy a PPC card for my A4000 for this reason in the end. If Commodore wouldn't build a PPC Amiga to hold its value I wasn't going to tank my last grant check on a 604 PPC card to try and match a Pentium system costing less than the PPC card.
Commodore should have designed the 4000/1200 to outperform the low end and high end PC on every level and still be cheaper. ie do what the A1000 did all over again, but this time actually try selling it to people rather than leaving it to rot while the pathetic and technically identical A/V chipset of A500/A2000 was brought to market 12 months late

By early 90s Commodore's competition was no longer Atari/Apple it was PCs, they didn't realise it and so went under (and so did Atari, Apple surviving because it was the only alternative left and sold despite ridiculous prices).
You know what the sad thing is? The A1400 or A1800 whatever it was called was a completed prototype being tested at Commodore. It had AGA, 2mb Chip+ 2mb Fast ram, 28mhz 020, AKIKO, CD-ROM, classy 3 box design not all in one like A1200 and priced between OTT 4000/030 and A1200 base model. No money to put it into production. If they hadn't pissed it all away on the F&%£$^ING CD32 delusional battle plan against N/SEGA that is. The only machine that could have saved Commodore had they built that instead of CD32 not hoped to release it Xmas 1994
Speaking of CD-ROM they also launched the A570 just as they were replacing the A500 with A600 which couldn't even use the A570! I'm surprised it wasn't before 1994 C= went under really.