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But it is not correct (or at least not complete) just to say "it increases SNR beyond 96 dB". It only does it on a fraction of the spectrum (the fraction interesting to human hearing).
That is only half of it. The first demo shows that a tone at < 96dB is still above the noise floor even with flat quantization noise. Shaped dither just improves things further. SNR is already > 96 on a band basis, which the article I linked later goes further into.
I haven't read it yet, but you have to integrate the floor noise throughout the entire band. Calculating SNR against the noise floor is wrong. Will read and come back 
Ah, but we aren't talking about SNR, we're talking about dynamic range. Not quite the same thing ;). Music isn't a broadband noise source, so you get some extra perceptual headroom for free.
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