78 RPM - Potential for better sound than digital?

Well, as good in what way? as low a noise floor? no, but you won't get that with an LP either. I have heard plenty of 78's that sounded better than cd's and many sound bad just like many lp's and cd's sound bad. A key thing is that there is very little moneuy being put into 78 reproduction right now. Also, depending on the era, the systems now are not really geared for that sound. They made some pretty hi fi 78's though.

in terms of the sound issues, what I mean is that systems are geared and tested with whatever the current software is. Speaker designers are going to be listening to LP's or cd's not 45's or 78's. Jukeboxes sound great for 45's because they were tested listening to 45's.

Back when 78's ruled, things were changing a lot. One thing you can be sure of though is that 78's were not recorded or tested on what your conventional modern system is. This doesn't mean they won't sound great, it's just a fact of life.

In the 50's and 60's a lot of record were mixed on altec 604's. If you listen to those records on those speakers, it may make more sense then on magnaaplanars.

Obviously the intention is for everything to sound good everywhere, but this is more often wished than it is realized.