I have no problem with intentional falsification of the sound and picture. I think the point of digital is to make those effects happen at only one stage and not two. Once digital is advanced enough, it seems like you can apply software filters to make it resemble film as much as you want, but the source will be cleaner so you have more options.
As far as just audio, I do agree that a lot of CDs do sound too sterile, but I'm not sure it has to do with an all-digital process. There are enough DDD recordings out there that sound full and live. But even if it is an inadequacy of the CD format, wouldn't using tube amps and warmer speakers "fix" the sterile, cold sound? Having a pre-warmed source seems redundant?
