My own experience with digital is that lower "distortion" translates into a blacker background, better resolution and instrument definition and placement.
Overall, I find that my digital system now provides for a very detailed yet relaxed sound. This was not always the case. Can it improve further? Who knows... I have heard a lot of digital sources/DACs and nothing out there has blown my mind, so at this point, I rather spend money on speakers.
How does it compare with analog? My turntable is not "high end" and is connected to my DAC through an ADC, so some will say that I am not getting the best out of an analog source.
However, many people (not necessarily audiophiles) do play LPs through their DACs, and appreciate the sound. Are they all deluded?
We also know that the quality of a well recorded LP can shine through a good vinyl rip.
I don't believe that a good quality ADC "kills" the sound of vinyl.
My phono preamp/ADC is the M2Tech Joplin. One aspect I find interesting is that the RIAA equalization is done through DSP and not in the analog domain. However good a phono preamp may be, there is always loss/distortion involved with analog signal treatment. So there are probably pros and cons to each solution. I have not found many other units that work like the Joplin.
A better quality turntable would certainly bring me further improvements, but is not worth the investment considering I play mostly digital.
Long story short: for those who have a digital only system and want to dabble in vinyl, a good phono/ADC can be a very good starting point (and perhaps sufficient).