I never fully realized you could mix two digital PCM by simply alternating their samples in the output to the DAC. That's fascinating. I realize now that some music output on the single bit Apple II computer may have been approaching mixing in the same way...
I can't say for sure as I didn't see the source code, but it definitely felt that way, back in the day. Compared to "regular" tracker, OctaMED always sounded more digital, more aliased, more bit-crushed, which I presume was an audio artifact of sending A/B samples to DAC.