I have that Ry Cooder album. I had always thought that is sounded a little "bright" and, thus, digital. But still, a solid production and entertaining. Yes Steve, 'The Nightfly' is also a bit tilted up on the top-end, but is so solid everywhere else that it holds well with most folks. High quality and well done processing can very well lead to a good end result. I hope that is not taken as blasphemy...
The best done analog still can not be beat. For example, Jennifer Warnes 'Famous Blue Raincoat' on Impex, or Patricia Barber 'Cafe' Blue' also on Impex, and the recently noted Dire Straits S/T from MFSL, and so many other great examples. A fully analog production is still the best, no doubt!