Digital attenuation definitely had problems in early implementations, but is probably not much of one in appropriately designed current generation equipment. If i recall correctly, the problems were related to anomalies in the extreme ends of the control ranges. Analog attenuation has its own problems, including the eventually "scratchy" control, and linearity imbalance across the control range. Digital attenuation is used in most of the "room acoustic compensation" circuitry used in many A/V components, including preamp/processors and recent-vintage powered subwoofers, so its already in the signal chain.
Originally Posted by oscar_in_fw
Practicalities enter the situation here. You'd have to "klone" my paycheck quite a few times before I could afford a digital preamp with the features I want (balanced outputs). And I suspect most digital preamps come with digital volume controls which neuter the sound in comparison with analog preamps.