By "perfect" I just meant that digital audio perfectly reproduces the recorded analog signals. https://youtu.be/cIQ9IXSUzuM

I didn't mean to indirectly praise Bluetooth in my post. Bluetooth anything pretty much sucks. Bluetooth audio in particular is pretty bad and full of usability issues. It doesn't seem to have the bandwidth required since the audio gets transcoded to some lossy format.

I once set up an mpd music server on my local network and audio quality was perfect. However I encountered significant latency issues. Play and pause had a latency of one second which made it unusable. That was true even for uncompressed audio streams over the network.

I got bored before I was able to resolve the problem. Maybe the problem was my network. I should try it again now that I have a much higher performance router running OpenWRT which is capable of traffic shaping.

Not much reason to use aggressive compression when wires have many orders of magnitude more bandwidth than bluetooth. And inconsistent latency is also not an issue when you control the whole network & don't need to share it with anyone else.