Sketchup works great. You can define all kinds of settings and create time-lapse animations. Using ArcGIS, you can convert DSM to TIN then TIN to Multipatch and COLLADA and load into SketchUp.
In fact back in 2006 even ESRI was acknowledging the SketchUp was the tools for this: Quoting "Users can rapidly develop three-dimensional models that are georeferenced, animate scenes, and produce shadow casting studies for proposed building."
Take a look at the article: http://www.esri.com/news/arcuser/0207/urban.html It only applies to ArcGIS version 9.3.1 and older as this is the last version where the SketchUp6 plugin can be installed. In fact, for your purposes (DSM) it would probably be easier to use the plugin to convert the TIN surface to SketchUp then the new way which requires a few more steps. (The benefit of using the older version is that you can also export vector features (polylines, polygons, points) from ArcGIS to SketchUp whereas in version 10 this is not possible)
As was already mentioned in the previous similar post, ESRI claims to have similar functionality but I have not tried the tools personally.