You hit the nail right on the head, Rip. It was technically possible to keep SACD/DVD-A signals digital long ago, but legal wrangling has kept it out of reach for most people. I've been a big fan of both formats, but even I must admit they're doing all they can to kill it. My most recent trip to BB revealed an SACD section that's shrunk by 50% over the last four months. The DVD-A section is about the same, but it was smaller to begin with. It looks like BB is giving up on SACD, and that's a bad sign. If it tanks, Sony better realize it's wholly at fault.
I was pleased to see digital amps getting TXH cert'd. While I don't consider THX the "be all, end all", or even really important, it's a sign that the amps are getting more linear. I'll agree that lower distortion is better, all else being equal, but there's a point where lowering it won't be audible. The Tripath has a little more distortion than, say, B&O's ICEPower chip or the TI chip, but ironically it's the one that's getting the most effusive praise from the audiophool community.
Many peoples only experience with digital amps has been in cheap crappy car systems. That's like eating chow mein at the mall food court and determining you don't like Chinese food. Obviously everyone has their biases and preferences, and that's part of the hobby. But I think digital amplification is poised to sweep the market. Certainly it's advantageous in places where size, power consumption, low heat & low cost are necessary (eg inside TVs, boomboxes, clock radios, etc), but imagine the other applications. Think of an HT with all powered speakers barely larger than passive ones. Or a "flagship" reciever in the same space as a conventional SS one.
At the high end, amps like the Bel Canto Evo series and the Spectron Musician III have garned near-universal rave reviews from every publication that's reviewed them. Sure, it's the cheapo ones that are at the forefront of public awareness, but like everything, you can get a no holds barred version if you like.