The comparison is not between lossless and the traditional DD and DTS encodes on DVD. It's between lossless and the higher bit rate versions of DD and DTS on Blu-ray. DD and DTS at their maximum bit rates sound great, perhaps as good as lossless. And, with better bass management, EQ, and DACs in a receiver, they may actually sound better. Also, if you have a 6.1 or 7.1 system, your rear speakers will be silent most of the time with analog because most movies only have 5.1 soundtracks. Digital allows you to apply DSPs and fill those rear speakers with sound.