Signals - digital or analog - can be transmitted for reasonable distances (as in anything encountered in a home) by cable without degredation, given the right cable for the job. When distances get really long, like in miles, digital has the edge since it is more immune to interference and other signal degredation. Digital can also be transmitted over fiber.
All this is moot in the home where distances are measured in mere feet.
[This message has been edited by soundhound (edited June 04, 2004).]