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RE: "Bits of resolution"

"> > Not sure how this relates to analog which in theory has infinite resolution within it's bandwidth.

"It doesn't, it has a fairly well defined SNR i.e. resolution."

SNR and resolution are two totally independent entities. The only thing noise does to an resolute signal is obscure the listener's ability to perceive the low-level information of the signal. And unlike a low-resolution signal, one can still hear the information well below the noise present in a high-resolution signal. Otherwise, for example, nobody would be able to communicate on an airplane.

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