FWIW nobody's arguing that LD audio doesn't frequently sound better, but I'd argue it's more a function of the medium's age than its capabilities. Studios futzed around with audio in the Laserdisc era, certainly, but the technology wasn't so ubiquitous--someone had to actually decide to futz with the audio if they wanted to do it, and the ways they could mess with it were limited. Now, it's just assumed that audio will be heavily processed for a home video release, and someone needs to decide NOT to if they don't want that to happen.

Which is why, generally speaking, LD audio beats DVD audio, but DVD audio still manages to beat BD audio on at least some titles. Lossy or lossless doesn't enter into it, it's the mastering.