Frankly, I don't understand what the problem is. Recording with 24bit word depth gives you enough headroom to record just about anything without clipping, and then editing software allows you to increase average volume and truncate to 16bits (or whatever).
This whole topic of digital clipping is discussed in the recording industry under the very unfortunate term "inter-sample overs". I've listened to very little pop music in the past decade or so, but apparently digital clipping is a raging problem, at least if you believe the articles about it. If this is really true the recording industry is populated by a lot of really incompetent recording engineers and mastering engineers. I find this difficult to believe, but the evidence is otherwise.
So long as this BS doesn't infect classical and jazz recording I suppose I won't notice it anyway. Many young people I know are into vinyl; they are under the impression it sounds "better". I noticed in one of the local big box department stores I was in recently there was a rather large display of phonographs, mostly horrendous all-in-one things like was popular when I was a small child. I know someone whose family is into owning FM radio stations, and they're convinced FM is making a comeback. One of my best software engineers just bought a McIntosh tube amp. I think nostalgia and the vintage rage are hot in audio and that's fueling this tape resurgence too. The audio good old days, which IMO are really the bad old days. I think I'll still keep my old Marantz tuner with a 'scope sitting in a box in my house as an investment. If my friend's family is correct it should be worth something soon (assuming it still works - I haven't turned it on in several years).
I agree with most of what you say here. However to make a really good digital recording of classical music still is a significant skill set. Not only do you have the problem of running out of bits, which in a live recording is a massive disaster, but you have trouble in the pianissimos.
Unlike analog, the distortion of a digital recording below clipping increases as volume goes down. Unfortunately the ear is much more sensitive to distortion on low level signals, but will not perceive it as distortion, but just as something not quite right. The reason is simple as you get to a level where the ADC/DAC has to choose between 1 and zero, so you get 100% THD! This is what dither (added white noise) is about so that you never get to the 1/0 choice. However this degrades the signal to noise and is the noise source in a digital recording.
Now obviously the higher the bit rate the lower the level of the signal at which you get the 1/0 choice and so less dither is required. That means there is improvement in signal to noise and therefore usable dynamic range.
So to make really excellent recordings you have to keep in mind what the end user bit rate will be, as it may well not be the bit rate of the master. So like analog you do have to keep program as close to bit saturation as you dare and keep the quiet passages as far above the noise floor as you can. If you just say I'm going to keep as far away from bit saturation as I can then you will not have a really excellent recording.
In other words you have to study the pieces to be recorded, know the music and the score. You need to have a conductors/orchestral score and follow a little ahead of the performance and be prepared if necessary to engage in a little manual gain riding.
Making excellent recordings either digital or analog is an art, make no mistake.
I'm glad 3db started this thread as it has provided an educational opportunity to talk about what happens before music is reproduced in the home. This latter is what we are usually talking about, but it is only 50% at best of the total issue.
Unfortunately I suspect a lot of members will just skip this thread as of no interest, which is a pity.
What I have been talking about gives insight into what can go right and above all wrong on both the digital and analog domains and therefore shed light in issues that can have a bearing on which medium is preferred rather than issues based on emotion and nostalgia.