Just happened to see this thread. I'll skip the device debate (nobody ever convinces anybody else anyway) but can relate some direct-to-disc experience from the recording side. Yes, you can get a magical capture, and there were a few, but it is almost impossible to do as well as a "normal" recording. Maintaining focus through an entire side with no break and no margin for error puts intense pressure upon the performers. And if you do make a mistake, it is not cheap to fix, and you have to go through the entire performance again (very expensive in studio time!) whilst trying to maintain that level of focus, again. It felt to me more like a long audition with no breaks than a performance, much more stressful, and no way to fix any little blips during it. And to keep breaks between songs short you must "instantly" switch music and mindset to play again with no break (usually in a live performance there's a longer break to introduce the piece and give the musicians a breather). It is very fatiguing mentally and physically. And for the mixing/mastering engineer as well since s/he is riding the board and the cutter in real time. Tough job.
I suspect most musicians/singers would prefer to put their very best on the recording and that means being able to retake a piece, or a section, try different levels in the mix, tweak EQ, etc. to dial in the final product.
FWIWFM - Don