That is probably overkill. 96+ is for humans, I guess. I agree with you.
Not surprising. Definitely can't be better than that if listened through loudspeakers, which are considered super-duper-extraordinary when the distortion is at -60Db when 1W is through them (like my modified Beyma TPL-150H AMTs, and only in some frequency ranges), and often have THD at -40Db, i.e. 1% if I am not mistaken.
As for listen through headphones, it may be a bit better, but I am not sure.
We do not actually listen to the DACs and amps, at least not in a pure way, they are mostly masked: 99% of what we hear are the transducers.
Remember that SINAD is a combination of noise and distortion. A DAC with 96 dB SINAD that is dominated by noise will likely have audible noise with amplifiers of typical gain. Distortion is a completely different story and much less audible but I want my DACs to have a dynamic range of at least 110 dB at 2 V output to avoid noise. You can get around this if you use a high quality analog preamp for volume control but for 8 channels that is not very practicable.
Michael