Hack: You and I are of about the same vintage. I was born just before the end of the 50's. We are not far apart in our thinking, though.
I don't delve into the analog vs. digital fray because I switched to digital back in the late 80's. Maybe that reveals my bias for ease of use, but in any case....
It is sad that the industry hasn't given us a format (with its marketing muscle behind it) that tops what was available almost 30 years ago when the 16 bit 44.1k standard was adopted. We should have digital resolution light years ahead of that standardized by now. I remember 360k one sided 5 1/4 floppies and the like in college. The CD resolution standard was developed several years before that.
With SACD and DVD-A flopping (like HDCD before them) we are left with analog and the CD standard. Everything else is pretty small potatoes.
The industry has accepted CD as a legitimate. Rega was probably the last to succumb in the late 90's. ARC, CJ, ML, Krell and others did before.
So, lossless or WAV files if you want to be a purist represent a benchmark that has been accepted in the high end (save maybe Goldmund and a few other mfrs).
Several, including J Atkinson of Stereophile and R Harley of TAS have said that a computer driven lossless file properly reproduced is equal if not superior to a CD in sound quality. Even at the highest level of the high end. My opinions of these editors and their biases I'll reserve for now.
A few renegades in the '70's (ARC, CJ, ML, Krell, Linn to name a few) were singing their own tune when the rest of the industry went to transistors and direct drive tables with high power/ great specs/ lousy sound. A few, like JGH of Stereophile and HP of TAS called a spade a spade. The market realized these mfrs had something special and rewarded them.
Today the market has seen a move from vinyl to CD to digital formats as noted above. The opportunity to stream this source material across the home exists. Not just one room but many can have source material equal or better than the quality from a CD playback system.
So, why won't the heavies who began the High End revolution in tyhe 1970's wake up and realize that they have a bona fide opportunity here?
Please, help make this happen. Incorporate wifi and DAC's to enable a whole house music of high quality? Think of the opportunity - multiple amps instead of one, multiple speaker pairs instead of one... the opportunities go on.