Re: CD cheap Vinyl expensive.
Well, consider that the Red Book standard for CD hasn't changed since 1983 and that is 44.1KhZ at 16-bit resolution and you're right. Most of even the most basic software packages now offer 96KhZ recording and 24-bit resolution and the DVD format has used these for some time - or at least had them available. Whilst the Red Book is certainly adequate for most applications, some of the geeks can tell the difference and there are subtleties.
Compression-free download has been a realistic option for a while now as well. FLAC files and .WAV recordings are being released all the time, but mainly as whole-album downloads or as individual multitrack files (Nine Inch Nails have been doing this, for instance) and these offer the consumer pretty much any quality they could want. If they want smaller files for their iPod, they can compress them themselves into .Mp3 (or .M4A on iTunes) or if they have the space, they can hold onto the original quality recordings.
This does bring us closer to analogue, yes. Analogue has a theoretically infinite sample rate and resolution so the higher the numbers, the closer to analogue we get.