The discussion was about whether CD could always be classed as lossless, not sure why you're suggesting I was talking about dynamic compression?
All digital recordings up to now contain noticeably less resolution than the original performance, and they also sound distinctly different as well.
Redbook CD is a highly lossy format which discards a rather large amount of "least significant bits".
I have argued for years that PCM digital formats are highly flawed. High levels of destructive noise, distort, non-linearities and overall lack of fine resolution have plagued it from the get-go.
High order DSD holds much greater promise, sounding much closer to the original performance. But it too suffers from the same issues, just to a much lesser extent.