Sonic8, you are correct - I over-generalized, maybe a bit too much.
Indeed, a DAO recordset DOES have a pass-thru mode that is indispensable for server-side action. And if you are lucky enough to have one of those server-side setups to exploit, great! However, most of DAO is client-side oriented. And as you yourself pointed out, ODBC Direct is in the category of "ain't there no more."
Perhaps I should have clarified that DAO is better for native Access databases even with split FE/BE, since in such cases the BE is passive, not active and there ARE no ways to get the server to do more than pass file content.
As to whether JET/ACE gives the active BE things to do, I believe that is more in the nature of the SQL that you write, since it is possible to write intractable SQL in any system. (I've cleaned up too many messes on that subject.) But if you say that the DAO and ACE combination can still result in sending queries to the active BE, I'll believe you. I attribute that to product improvement over the years, because that wasn't always the case in the earliest versions of Access. I knew that if the tables in question were indexed, the queries were going to use the indexes to select items to return, so there would be that much of an assist. But I don't recall it being more than that.
I'll toss in another couple of cents worth, though. ADO is "ActiveX Data Objects" and at least some of the deprecation of ADO came about because "ActiveX-anything" has a REALLY bad name in some military circles. Part of that is bad PR, because early hackers would "play with" your active X to do stupid things to your screens - and worse.
Microsoft REALLY wants to pander to its biggest customers. Some years ago, there was a Navy/Marine Corps Intranet (NMCI) contract in which MS and some lucky PC vendor would get to provide new desktop units in 10,000-lot quantities, more than one lot, and with tech-refresh (translate - automatic upgrade) every 3 years. Who would NOT pay attention to customers operating in those quantities? And that was just Navy & Marine Corps. The Army and Air Force each had their own versions of same.
For what it is worth, I believe the Navy has finally decided that ADO isn't the anathema that they first thought, or at least it is not as bad as some other ActiveX situations. They were heading that way when I was preparing to retire. Gent, you are still with the Navy. Have they relented on ActiveX - at least for ADO - in the last couple of years? Or has that ever come up with you?