Some people like the distortion of LPs, as it adds a "warmth" to the sound. You can read about some testing at:
Vinyl vs. CD - A Running Commentary - Parts 1 - 5 - Secrets of Home Theater and High Fidelity
Parts 6-9 start here:
Vinyl vs. CD - A Running Commentary - Parts 6 - 9 - Secrets of Home Theater and High Fidelity
The whole thing is worth reading, but experience tells me that most people will not bother doing that, so here are some useful quotes:
Now, when the RIAA pre-emphasis curve is applied at recording, and then the de-emphasis curve is applied at playback, the phase shift should cancel out and you end up with a proper phase relationship throughout the audible spectrum. Right? Well, that would be fine if all the recording systems applied the RIAA pre-emphasis curve perfectly, and all our phono stages applied the RIAA de-emphasis curve perfectly.
Guess what? Nothing is perfect out there.
So, we end up with LPs and phono stages that deliver a sound with varying amounts of phase shift in all areas of the audible spectrum, and I feel that this is one of the defining characteristics of the analog LP sound. It delivers a soundstage that is much different than what you would hear from a CD where such EQ curves are not applied.
And, it’s very appealing.
And:
To start, I used 1 kHz sine waves.
Here is a graph of the spectrum generated from the test CD. THD+N was 0.005%. That is very low and very good. Notice that the one distortion peak visible is third order.
At 10 kHz, distortion rose to 0.01%. Again, the one visible peak is third order.
And…(drum roll)…here is what you have been waiting for: The Vinyl Results.
At 1 kHz, 0 dB, distortion was 7%. “Wow, that’s a lot of distortion,” you say. You bet it is, but notice that it is nearly all second order. Also, the noise level contributes to this high number. At best, the noise is 70 dB below the signal, whereas with the CD test, it is more than 100 dB lower. We could measure just the THD, but much of the harmonics are buried in the noise, so this would not be a fair estimation of the resulting sound.
And:
So, what can we say at this point? It seems to me – and this is with some of the very best hi-fi components in the world – that one of the most significant reasons vinyl aficionados love the LP sound is that the distortion is very, very much like that in Pure Class A triode single-ended tube amplifiers. There is a lot of distortion, but it is virtually all second order (even-ordered), which is euphonic, meaning that it is pleasing to the ears.
Basically, the LP format adds distortion to the sound, and the type of distortion that is added tends to be "warm" and pleasing. It is, of course, less accurate, but some may like it.
For the CD haters, here is a good read:
Boston Audio Society - ABX Testing article