Onsite, it's not feasible to use miles of cable for analog signals (and it is miles, in large venues). Even with balanced connections you start getting noise problems after a few hundred feet. Digital conversion closer to the sources solves this issue, which means those DACs and ADCs need to be networked somehow. Building infrastructure for corporate networks onsite is a mostly solved problem with lots of cheap hardware available, so they just use that and place custom gear with the converters at the input/output locations. Not to mention if lighting is involved, noise can get really quite bad.
It's just all around more modular, cheaper at scale, effective, and foolproof than full analog.
There's also a whole bunch of less sexy use cases in corporate environments where a PA doesn't work at all.
I’m not in the industry but my wife is, and AES67 seems like a complete game changer.
And that was just the early days, when even the protocols that sometimes used Ethernet were only L1 and L2 and not IP-compatible/routable. You might have had several lines of ethernet running back and forth to the stage, but couldn't comingle snakes with IP-based control systems.
AES67 and friends pushed the industry to a point where, basically, everything speaks IP. The stage remains an analog realm up to the DIs and mic premaps, and everything can be routed and distributed in almost infinite combinations from there with commodity hardware.
Its seriously as impactful as the shift from tape to digital recording in terms of the new workflow options and paradigms it opened up.