Background hiss exists in just about every recording ever made... even digital (it's called 'Dither' in this instance)... I don't have a problem with it. Get rid of the hiss digitally, and 9 times out of 10 you get rid of some of the music/ambience too... check out the 2-CD set of Return of the Jedi to learn how NOT to do this... lol! Sounds as dull as dishwater!
A digital music file (i.e. CD) exists as a series of samples of the real thing. Analogue (LP or tape) is closer to the original master in this respect... this a HUGE over-simplification however to those that know about this stuff.
Technical differences aside, many prefer the sound of a good clean LP and a decent record player (and by decent I mean something that costs at least £300 if new...) - often sounds more natural and gets you into the 'vibe' of the music than alot of digital players.
On a decent system there are many LPs which have less hiss than CDs... it all depends on the mastering. for some colourful discussions (to put it lightly) type LP vs CD into Google.... ;)
Interestingly the same arguments are raging in the blu-ray camp... some (thankfully a small minority) claim that film grain should be digitally erased to result in a 'perfect' picture... most claim that the film grain is a part of the original look of the film, and should be retained. It's part of the aesthetic rather than a fault per-se. I feel the same way about master-tape hiss...
- 7FN