I think you may be right about the limitations of analog media being somewhat more pronounced than digital. From my understanding however, and from what I've been able to hear, the real differences lie more in the extraction and reproduction of the sound rather than in the recording. Certainly, the potential of digital electronics to reproduce the sound better than analog sources is there. However, my experience has been that the very good analog sources I've listened to (mind you, its always a package with very good amplification and speakers) have provided a more enjoyable listening experience than their digital counterparts. Some of this may be the way LPs are equalized relative to CDs, and my preference may simply lean in that direction. Its hard to say. In my home I don't have an exceptionally high quality vinyl setup, so almost everything I listen to is on CD. Still, when I treat myself to an afternoon of window shopping at the local audio shops, I always end up saying "ahhh" when the platters are spun.
It would be very helpful for me to get a layperson's explanation of differences and advantages of the SACD and DVD-A formats over the standard CD format. Also, if anyone is familiar with the equalization used with LPs (RIAA?), it would be interesting to hear an explanation of how it differs from CD eq.
Cheers,
Ken