This doesn't sound possible. My understanding is once it's in the computer it's digital and the only way to go to analog would be to physically run the audio out of the mac and back in through an analog soundcard. This BS about Mac converting to analog is not true. (but please correct me if I'm wrong, because that means my fundamental understanding of computer editing will be null)
As for editing, I like Peak alot. It's not free, unless you buy Final Cut, but it's good. Another program that I have been playing around with is an opensource ware named Audacity. It has VST support and there are some pretty good freeware VST Plugins floating around. It also can import many formats including decoding mp3, ogg vorbis, aif, etc. You just can't encode mp3 because it has to be licensed, thus paid for, but you could convert an aif in iTunes.
A good place to start finding them is at
www.osxaudio.com they have reviews of osx compatible audio programs.
Hope this helps.