Applebook,
You write, "I fail to understand how a (decent) studio digital file can be inferior to a consumer digital file of the same piece of music, especially when the source is vinyl (for needledrops) instead of master tape or digital master recordings (for studio CDs)."
That was my thinking when I originally posted the question. A friend of mine was of the opinion that superior results were possible on high-end gear. I figured that the studio master tapes would, by definition, produce a superior product. The one argument that made some sense to me pivots on what you mention in your post. You say, "Studio mastered CDs, when done correctly, should easily surpass needledrops..." I think the operative statement is "when done correctly". I have no idea what goes into producing a commercial CD, but apparently a lot depends on the audio engineer at the helm and the budget of the studio.
I'm pretty certain my budget home system won't match a commercial CD, but my efforts so far have allowed me to make very listenable digital files for my iPOD.
Craig