I agree with most of what you're saying but one of the places CDs actually do improve upon vinyl is dynamic range. CDs do, as a fact, have more dynamic range potential than vinyl. A vinyl record's dynamic range is determined by the difference between its shallowest and deepest part of a groove. So its limited by how deeply you can cut the groove into the master lacquer. Since its a physical medium there is a limitation of dynamic range based on how deep you can cut groove before meeting in the middle from the other side or compromising structural integrity. Your statements and illustrations about bit & sample rate are still valid and an argument for why vinyl, despite its limited dynamic range, can still be a high quality alternative to CD.