I agree with you that cable quality is of utmost importance in digital, even though "theoretically" digital cables should make no difference. I have a very expensive AES/EBU cable from Mutec reclocker to DAC (see my signature) for a reason. And I am not claiming that is perfect either.
It is also true, as you say:
"Digital has clearly lower distortion but the type that is there is wholly unnatural and has no basis in nature."
That is why the human ear/brain interface is several orders of magnitude more sensitive to digital jitter than it is to roughly its equivalent, analog wow and flutter. A major problem is that while in wow and flutter all frequencies are affected equally, in jitter the timing error affects different frequencies differently -- and in an inconsistent manner, depending on the music signal from moment to moment.
Digital can be made musical, but this requires reducing all its unnatural distortions to a minimum. To my ears, I have achieved that in my system, making digital a highly engaging and enjoyable experience for me.
Funny though that some of the nasty distortions that I previously might have attributed to digital, or actually did so, were in fact room distortions and distortions resulting from suboptimal speaker set-up in the room. Or distortions that were downstream of the digital related to suboptimal power delivery to components (remedied by competent power cords). Digital isn't to blame for everything
.