Adressing your points:

Music may have been a bigger culturual force during the heights of vinyl record sales. Whether that translated to better music or whether it is some form of survivorship bias: I don't know. In fact I doubt it. But there is something to the music that happened when it was new, e.g. Punk music was better when everybody was still trying to figure out what is punk and what isn't, while today it feels like most bands just copy was has been made in the past. You can extrapolate the same idea to many other genres that developed. So was the music better on average? Probably not. Was it more exiting and had more impact on society, fashion, culture? For sure.

As for vinyl: I agree that digital is superior in terms of sound quality. Nearly every vinyl record is pressed from a digital master nowadays after all. Even those who want "vinyl warmth" could have that easily emulated in digital nowadays. Digital is endlessly flexible, you could theoretically envision (and some have done) a vinyl experience that is purely digital under the hood – or you could do whatever netflix is doing.

But in practise vinyl comes with the experience, forces you to do the ritual, to listen to the whole album, is immensly direct (just the waveform pressed into the material) etc. This is a limitation if vinyl is all you have, but in times where you could listen to 10 nameless streams of sounds at once for the whole day that limitation has become a popular feature. I have friends with pressing plants and all of them have more job offers than they could realistically fulfill for years now.

I'd advice against too easily dismissing the value of the ritual a technological dispositif forces onto the people interacting with said technology. Listening to a vinyl record in a time where people rarely ever sit down and just listen to music in a concentrated way is a thing people look for. Those who say it is because vinyl is technically superior are wrong, but the limitations and the listening habits a technology enforces are unseparably a part of the technology itself. And if you are looking for what vinyl gives you, vinyl is the thing that gives it to you best.