For a small percentage of people that may be true ... but ....
There is a debate over the relative merits of analog vs digital. That said, for many people -- certainly those with less than "golden ears" -- digital music (CDs, SACD, DVD-A, etc) offer excellent sound potential relative to analog (vinyl records).
I say 'potential' since the equipment and room make a HUGE difference to the sound. That said, recording quality varies widely too.
A 'home theatre' is not necessarily associated with poor sound. I have a home theatre setup (7.1 surround sound) with fairly high end equipment and have set it up for music and movies/TV. I like quality surround sound music (SACD, DVD-A, HDCDs) and find an HT receiver (in my case Pioneer Elite) works well for me. Some purists would sneer at my setup, but most people I know think the sound is excellent.
Part of the reason some people don't like digital music is because they claim it is harsh (relative to analog). In addition there are certainly some digital recordings where the dynamic range has been compressed badly. That said, there are many excellent digital recordings.
It's like everything, there is a huge overlap in quality between the two approaches, with analog maybe having an advantage for a few exceptional recordings and digital having some notably 'bad' ones. But analog is prone to developing hiss and clicks that digital is not ... and the big thing is the limited choice for recordings in analog.
Overall, if you have the ear and the money you may be a candidate for a dedicated analog setup for music and a separate one for movies/TV, but for the majority of consumers a digital home theatre setup capable of both music and movies is a much more cost effective approach.