Analog TV was in many ways superior, I haven't watched broadcast TV in quite a few years but I played with it when digital first appeared and marveled at the picture quality when conditions were ideal
It's the usual story of greed. I remember the early days of DVB here, in early years of 2000. During late 1990's, analog cable services replaced terrestrial at higher rate anybody expected, except for countryside of course. Analog TV picture quality was at its peak in year 2000. (Here, compared to the USA, it helps to know PAL has a tad higher definition and absence of color shifts, compared to NTSC; at the expense of more flickery picture due to only 50Hz refresh rate.) Picture quality was basically just fine. Only SD, but equivalent to approx. 500x550 pixels, and with absolutely no compression artifacts.
But exactly because the lack of compression, analog requires so much bandwidth. With digital, you can do all fancy tricks like running
macroblocks through
discrete cosine transformation to remove a lot of data with only minor perceivable difference. Better yet, you can compare adjacent frames and calculate
motion vectors so that full image data doesn't need to be stored in every frame. Compared to analog, this is quite some UFO tech. Those days, the compression standard was called MPEG-2, and the bottom line, as shown by the official DVB design documents, it could squeeze the required bandwidth down by 50%-66%, enabling one TV channel to be replaced by 2-3
without perceivable degradation in image quality. That's just HUGE.
But then, enter the greed. Instead of 5-6 channels (for a small country) with mediocre to good content, what if we come up with 10-15 channels more, they can just broadcast teleshopping infomercials and other crap you can get broadcasting rights to for basically free because no one wants to watch it.
So we ended up with bundles where one analog TV channel was replaced with 8-10 MPEG-2 DVB channels, for which the system was not engineered for. So the image quality dropped to something comparable to a
video CD, or early day Youtube, and it did not take many years to Youtube actually surpass the TV image quality.
Simultaneously, enter massive technical problems regarding soft subtitles, screen aspect ratios, reliability in general - and of course people who cared about technical details (for example, wanted to enjoy a good movie) were extremely pissed - the whole DVB transition made the television
technically worse than what analog was.
And it was all because of greedy management and their stupid ideas - not digital transmission itself.