interesting, your comments here. why? because i yust got back from woodsyi's house, partaking of his hospitality, & listening to a few digital playback systems w/a few members of the mid-atlantic audio circle. we listened to am unmodded transporter, a way-modded squeezebox thing, done up by bolder cables, including a spendy upgrade power supply, & a basically stock squeezebox fed into an empirical mods pace-car, feeding a northstar 24/192 dac. preamp was a highly modded modwright unit, you will have to ask rim specifics, i don't know them. i've heard it before, & it's excellent, imo. rim was nice enough to humour me by allowing me to bring one of my lowly modded art di/o's along, so i could compare it to the much spendier spreads. well, bottom line is that the di/o was absolutely no worse than any of the other combo's we listened to this evening. why do i say "no worse", instead of something more complementary? well, tho the di/o sounded as good as any other digital we listened to, (all were so close as to be pretty-much impossible to reliably distinguish between them), rim has a really sweet analog set-up, (two in fact!), & the winyl being spun was so much better sounding than the digital, it was no contest! 
doug s.
Doug, can you elaborate more on what you guys heard? I will be doing a similar A+B test in the not too near future. What, may I ask, is the "lowly modded art di/o" exactly....? And BTW, I agree with your final analysis: as much as people huff and puff about digital, it still does not cut it. Digital cannot transcend its inherent flaw in sound processing. We need a new recording or data technology that can take the analogue signal that is music and spit it onto a smaller, more portable medium other than vinyl. Anyway, here is a quote from a WIRED magazine article documenting the recent renaissance in vinyl:
Another reason for vinyl's sonic superiority is that no matter how high a sampling rate is, it can never contain all of the data present in an analog groove, Nyquist's theorem to the contrary.
"The digital world will never get there," said Chris Ashworth, owner of United Record Pressing, the country's largest record pressing plant.
(http://www.wired.com/entertainment/music/commentary/listeningpost/2007/10/listeningpost_1029)
not sure what you mean when you ask "what we heard". we heard a paul simon cut over & over again!

(again, i would have to defer to rim as to what it was; i was unfamiliar w/it, but it was definitely more of a "world music" type song, not a pop song.) i was listening for soundstaging, tonality, detail, prat... at first, the bolder modded squeezebox seemed to be noticeably inferior to the others, which were hard to distinguish. but later, the bolder modded squeezebox/bolder p/s seemed as good - it seems that its wolume level was reduced, & this made all the difference. we were unable to exactly match wolumes, cuz it would have meant reducing the digital wolume of both the modwright transporter, & the squeezebox feeding the pace-car/north star dac so much as to introduce distortion - it's well known that the digital wolume pots need to be near-max for them to be transparent. and, the wolume of the modded squeezebox was too soft, even at full gain, compared to th others. so, what we did was listen to the same song from start to finish on all four set-ups. the art di/o was run thru the modwright transporter's digital out, as its source. (in my experience, if i had brought an additional isolation transformer for the transporter as well as the di/o, it may have oimproved things even further, as this has been my experience w/my di/o - separate iso-tranny's for dac & transport offer lower noise-floor & more detail.) in any event, the bottom line was everything was so close, it was not possible to judge any one better than the other, imo. we also tested one female wocal, (cassandra wilson? - i dunno), that rim said was his "test" for sibilance, as it seemed every word in the song had an "s" in it, lol... one guy said he thought the di/o handled sibilance best. rim looked surprised at his comment, me too - imo, the stock squeezebox/pace-car/north-star dac had the least sibilance, but it was my opinion that it was due to its playback level being lower. but, by then, listening fatigue had set in, & no one thought it worthwhile to try to discern any more differences. so we cue'd up some winyl, & heard some
music! 
rim's system, btw is killer - you can get all the specifics here. except he recently retired his basis 1400 turntable & is now using a rim-drive (pun not intended, lol!) teres deck with origin-live encounter tonearm & benz ruby 3 cartridge.
http://www.audiocircle.com/systems/index.php?systemid=361re: your & freo's take on winyl vs digital, imo if standard redbook cd were 24/176.4 or 24/192, then digital could equal or surpass winyl. but it's not, so it can't. pretty simple, really... and, since i cannot go into the basic music store or go on-line & buy standard 24/192 or 24/176.4 discs of any software i might wanna buy, the theoretical argument that 24/192 or 24/176.4 is better than winyl is a moot point...
doug s.
oh yeah - what's a di/o? seem my ad on this site, posted earlier in this thread, for starters; there's a huge wealth of info about modding these things on the web... (this di/o is the one i brought to rim's for the comparison; i have two others.

)
http://www.audiocircle.com/index.php?topic=49382.0