Hi - I've read this thread with interest (and some disappointment).
I was at one of my client's today - I work in IT. They are a digital studio, just a small operation, with a mixture of Aardvark/Audition and Protools gear (they are currently transitioning a lot of stuff to Protools).
We were talking about various issues, and got on to the digital/analogue thing. I am not an analogue purist, but my wife plans to record a CD soon and I'm looking at laying the drums and bass down on a TSR-8, then moving them into Audition to do the rest. What we got to - and its already been discussed in this thread - is that it really doesn't matter too much. In most cases the choice of mics, offboard gear and the skills of the musicians, engineer and other aspects matter a lot more than the technology used to record it.
Both digital and analogue have issues. Analogue adds a pleasant distortion to the signal and other artifacts that can make it sound warm. It adds tape hiss that may be a problem (listen to U2's album October - Steve Lilywhite loved his compression, and it really brings out the hiss).
Digital does not have perfect resolution, so it introduces its own distortion through approximation - although at 24 bit its really not too bad. It can sound sterile due to the lack of the distortion you get through analogue. But on the other hand with the right tools you don't loose quality with multiple copies etc.
One issue I have read a lot about (including here, from people I respect) is the apparent lack of quality in current music - especially chart stuff. I believe that this has a lot more to do with aggressive mastering, marketing and lack of talent than the fact that its recorded digitally.
A couple of years ago I read a very interesting article by Bob Orban and Frank Fotti (its referenced
here). Bob and Frank represent companies who make two of the most popular broadcast processors on the market - the Orban Optimod range and the Cutting Edge omnia range. In the article they address a problem occurring more and more in broadcast - overly aggressive mastering leading to clipping or excessive limiting on tracks destined for airplay. In much the same way that some FM broadcasters process the heck out of everything, it seems that mastering engineers are pushing everything to get that 'hot' or 'loud' (or as I call it, nauseating) sound for their track.
No while a little bit of controlled, distortion-cancelled clipping (as used in units like the Optimod, omnia and my favourite, the Aphex 2020) works nicely for FM, clipping in mastering can sound really harsh and unpleasant. Worse still, put this clipped audio through a broadcast processor and the phase rotation (used to make programme material more symmetrical and easier to process) moves the flat top pretty much anywhere - and makes the product sound like crap.
I believe that in a lot of cases this mastering is what is making modern music sound like rubbish.
Now, here's a disclaimer. I am a qualified Chartered Accountant and work as an IT consultant. I do electronics as a hobby and am on a local broadcasting trust. I am not a musician, I am not a professional sound engineer, and I do not get in to waveform analysis etc. So what I have just said may be complete rubbish

. If you disagree with me you may well be right. If you agree, you may be wrong

. But this is my opinion and I'm sticking to it.
In summary. Analogue good and bad. Digital good and bad. Modern music good and bad. Modern mastering bad. Aphex good. dbx good. Mackie ok. Behringer bad.
Cya
Andrew