Craig,
I think I see Bit's point-- If we can do it manually by up-sampling the project then down-sampling, why can't the plugin do it for us? This seems reasonable conjecture to me.
I do think that by running the whole project at a higher sample rate and then down-sampling once would have likely benefits of artifacts from the filters not finding their way into the audio.
I'm sure Bit hears the audible difference in these tracks.
On a different note, I'm not sure that bringing up qualifications helps the conversation... saying the Jeff is Pro (suggesting that Bit isn't as qualified at least in part because he's challenging your assertions). There should be empirical truth, like the audible difference in the files you posted. And there is a scientific reason for this. I think we all agree there. And you present a good argument to revisit sample rate choice in our projects.
I think Bit is probably on board with all of this. I hear him challenging the ideas. Like if a filter were just applied after the upsample, why would there be audible fold-over frequencies in the output. Seems a reasonable question to me. I think this is the root of his 'bad plugin' argument.
There are lots of people here with lots of opinions and different views on the matter. I know a Physics PHD from UC Berkeley and current professor in physics who reviewed this and gave me his opinion.
I like the topic and I like how everyone has conversed on it. I want to speak up and say I also like Bit and how he's presented his knowledge. I don't think anything you or Jeff has contributed invalidates Bits challenges. They are reasonable challenges. Same with DrewFX. That dude's freakin smart too.
I've learned something from everyone and I'm grateful to all. I wouldn't want Bit to feel quelled b/c some one is being more successful in the industry than he is (or not, idk).
As an add, I wonder whether applying the down-sample filter only once in the whole project (by using a higher project sample rate) rather than over and over on each plug-in might not have a cumulative effect improvement like that described by Craig earlier when trying to get noise reduced in an overall project.
I also wonder whether bad filters are used in down-sampling within the plugin in order to keep latency as low as possible. This might explain why Sonar's offline down-sampling does a better job.