Well Bit, I'm going to have to respectfully disagree with your analysis... a little<G>.
Dean's point is spot on. We KNOW what's wrong with different parts of the analog chain, and we certainly know what's wrong with conversion between analog and digital.
Stephen St. Croix once suggested that it was crosstalk, both on tape and in a console, was a big factor in why analog sounds analog.
I'm not suggesting that the day won't come when we will be able to model analog systems so precisely as to make the differences inaudible, but we are not there yet. The UA tape deck emulations are close, they capture that feel without capturing all the stuff we didn't like about analog tape. But I'd wager I can still tell the difference - which is bogus, since the tape hiss and wow and flutter alone would make the difference obvious<G>!
The degradation you mention are very close to insignificant, and the euphoric effects are reaching that point too. But I don't think we are there yet, and I'll take the benefits at the cost of the problems that remain<G>...
as always, YMMV, and that's why I wish more folks could check it out for themselves.