Actually there are problems with both analog and digital processing. There are losses in even the best analog crossover. CD and DVD information is digital to start with. Bass management requires summing information (say from 5 different channels into the bass channel), as well as doing crossovers and both can be done more accurately in the digital domain than in the analog domain.

In theory, you lose very little information compared to the original CD and DVD information in well thought-out digital processing. The resulting information has less data loss if you process the information digitally, and DAC it to analog, than if you instead, DAC it to analog and then do analog processing (summations, crossovers, delays). In either case, the information can't be any more accurate than the original CD and DVD information, which is digital.

It's different if the original information were analog, e.g., vinyl, or if the digital processing is done badly. I would prefer analog processing over bad digital processing. The flaws associated with analog processing are usually more pleasing to the ears than the flaws of bad digital processing.

[This message has been edited by Will (edited August 15, 2002).]