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Initially, they’ll process it in digital form, but as time goes on, more-and-more of the processing will be done with new kinds of analog circuitry
I don't think information can be processed on a loss-less basis unless it is done digitally.
It is precisely because of it's binary nature that digital systems have to "LOSE INFORMATION"
For Digital to be lossless in a pure theoretical domain, especially when you are doing a conversion, you would need an infinite number of bits.
Wrong. It's because of its DIGITAL nature.
... For instance if you could develop a one-to-one transformation between digital and analog then you could 100% ...