Hi markw,
Optical cables can be used to send analogue signals - just like an RCA cable. I used to think that they were used for digitally coded signals exclusively, but apparently this isn't the case. Output from a DVD player would normally be DTS, Dolby Digital, or audio CD data, these all being digitally coded.
The fact that cables act as a kind of filter is, if I remember correctly, to do with the fact that no cable has infinite bandwidth. I read this a while back in 'An Introduction to Digital Audio', by John Watkinson, and I have forgotten the exact technical explanation. Of course, all cables will technically perform differently. The author gave more of an explanation for electrical signals than for optical signals. The technical explanations are the things talked about by cable manufacturers - the dielectric, shielding, etc. I'm sure no one disagrees that these are things you have to consider if you were to make a cable. Personally I make do with fairly cheap cables (RCA, toslink) apart from with video cables, where the cheapest cables usually perform poorly.
If using optical cable for digitally coded data, then the cable will still distort/filter the analogue signal, but the DAC receiving the digitally coded signal should be robust enough to reject such distortion.
If using the optical cable as a connection for output to, for example, a minidisc deck, then the data may be sent as a non-digitally coded signal, (e.g. FM radio recording through an optical out on an A/V receiver to a minidisc deck). The distortion of the signal by the optical cable will not be rejected because the signal is not digitally coded. Therefore the properties of the optical cable will be important, just as it is in a standard RCA audio cable. The optical cable has the advantage over an electrical cable of not picking up electrical noise.