Overall analog is still the king, but digital has come along way and has gotten much better. You have to of course start by comparing it at the studio level on down to what consumers actually are able to playback onto there systems.
Very few studios still use analog recording processes as its much easier to edit in the digital domain, for ease of recording, editing, and mastering digital is now the mainstream in the studios.
The big issue with digital is people have gotten away from cd's in favor of mp3 digital downloads which have significantly less quality of sound. For those that really care about sound quality is the high bit rate music downloads from sites like HD Tracks which can be downloaded to your computer with the right music software and a high quality digital to analog converter and get sample rates up to 196k 24 bit which comes much closer to the original master recording and analog. Still not analog in my opinion but the gap is closing.
You also have to look at new recording verse older recordings. Of course old recordings are analog, so they must be converted to digital to be transferred to CD, or low quality mp3's.
There is limitations with digital both in the recording process, and playback chain, and 98% of people never hear how good higher quality digital music can sound.
Analog captures all the harmonic overtones and nuances in the music I feel digital cannot.
The other side is the amount of information that can be pulled from a analog record. A good analog playback system is not cheap, and its almost endless how much information can be pulled from a record. For those looking at cheap analog playback systems your not getting even a glimpse of how good records can sound. In fact a if you compare a cheap analog system to a cheap digital system, digital is going to win. but as soon as you get to a certain level or price of music system analog becomes the clear winner.
Digital is getting close, some say better, I still say analog sounds more like real music, not a simulation of the original performance.
Kevin
40 years high end audio video specialist