Nope, it just means it didn't have a digital soundtrack to begin with.
Okay folks, I see my mistake. I reversed the process. Analog and digital signals can be stored on laserdisc, but they must be stored in analog form. The "envelope" is analog, not digital. Here are some examples...

"Anyway, MeBeJedi. What are the most apparent flaws you see when you´ve downgraded the capture to a DVD standard? What picture flaws do you see that weren´t in the original laserdisc? Does it go softer, is ghosting introduced and so on? Can u shed some light on the difference from source to destination?"
Sharp delineations are lost. Edges become softer, and objects with a range of colors (light brown to dark brown) have "bands" of colors, rather than a gradual change.