Analog Devices makes some nice digital pots. I worked on a project many years ago where a digital pot was an option for replaced resistive pots. It was a short lived idea. The digital pots all had problems with "zipper noise" Each time a signal was sent to attenuate, or boost a signal, the pot made a "clicking" sound. If someone held down the up or down button for volume, these clicks were all strung together, and sounded almost like a zipper.
An option might be to use a digital pot, and a voltage controlled amplifier. You won't get zipper noise this way, but will get a noticeable attenuation or boost step. Unless you pick a digital pot with a high number of steps. The this step end up being very small, and not as noticeable.
Another problem, memory. The digital pot has to start somewhere. You'll need to find a way to set it up so the volume is blaringly loud. You may also not want your device to always start with no signal. Or, you may want it to always remember where you last left the volume set.
In any case, it's a fun project.