Nobody was "beaten", Beagle. We simply disagree on which sounds better. I could say that I have an opportunity to compare recorded sound to a direct microphone feed every day, and that digital SOUNDS exactly like the direct mic feed. However I'll admit that, although a reel to reel analog recorder may not sound exactly like the microphone, there's something very attractive in the editorializing it does about what's fed to it. This is why for years as a production manager in radio, I would record music and sound effects into my "workstation" computer digitally, but for my voice, I'd always record it to analog tape first to pick up that "special warmth" that comes from the process. OF COURSE it's a form of distortion, but a very attractive one!
And while I also believe that the various resonances of stylus/cartridge/tonearm/plinth in turntable reproduction are responsible for most of the "analog warmth" of lp, I will also admit that for whatever reason lps have a certain "something" that I can understand people preferring, although I don't prefer it myself.
We each hear things through our own biases and preferences. For some the "warmth" "spaciousness" etc. of analog is more important than anything else. Not so for me! I have ALWAYS been bothered by things such as inner groove distortion, speed inaccuracy (I am blessec/cursed with perfect pitch!), wow, and flutter which can never be divorced completely from lp playback. These things bother me MUCH MORE than a lack of "warmth" and "spaciousness". I long ago lost the ability to "listen through" the faults of analog lp playback and "just enjoy the music". When I hear a high end lp system through state of the art electronics and speakers, I must confess that what is going through my mind is "yes, that sounds very nice, but there still is a slight amount of pitch instability, there still is surface noise, there still is inner groove distortion, and I still hear ticks and pops". In other words...it's still "merely" a phonograph record, which for all it's refinement, still is just a "rock being drug through a squiggly, dust-infested groove!" This technology is now 125 years old! Considering that, it's remarkable how good it can sound! It's a sad bit of irony that the finest turntables, tonearms, and cartridges in history were introduced after the majority of music listeners quit playing lps!
But there will ALWAYS, at least for our lifetime(s), be a need for extremely high quality lp playback equipment, because such a huge amount of recorded material exists, much of which (most of which, possibly) will never make it to cd, let alone dvd-a, sacd, or whatever comes next. I have never sold my lps! They're still on shelves in my living room, with the overflow in boxes in the closets. I still maintain a high quality turntable/tonearm/cartridge, although they are seldome used these days! I just can't bring myself to part with them. And they contain music which in large part I've never seen on cd! So people like me, and you too perhaps Beagle, who have been collecting music for decades truly must have both formats (lp, cd, and perhaps md, dat, open reel, and more) in service in our systems. I agree with you that the people who truly lose are those who concentrate on the technology so much they forget to LISTEN TO THE MUSIC!
A great performance of lovely music on am radio is INFINITELY more enjoyable to me than a pristine recording of mediocre music on the finest audiophile system!