I don't think everyone in the music business agrees that digital can only go so far. There seem to be plenty of people interested in pushing it further, and it does indeed make important leaps every few years.
I got back into vinyl about a year ago, after a 15 year hiatus. I was really excited about the vinyl that sounds better than CDs (although not all of it does--but what does, is terrific).
But then I traded up to an EMM CDSA-SE, and was startled. Now, more CDs could compete with my vinyl. And a really good SACD can REALLY compete with vinyl.
And today I was listening to one of the relatively new Linn Digital Stream players, the Klimax DS (which I barely understand). I've auditioned it several times before, and I continue to be surprised by how much it can get out of CDs that have been loaded on a music server. It's a lot of money, but it indicates that there is more progress available for digital.