Other than the fact that DSP is limited by the amount of processor power and amount and speed of the memory available plus the fact that the signal has to be converted to digital then back to analog all end up diminishing the original signal to some point. I know this from testing 5 different DSP units against a bunch of analog eqs and crossovers, the sound with all controls set to flat and implementing just the crossover on the DSP was enough for me to obviously notice a loss in "fringe" sounds and very slight details were lost with DSP.
Ive always said this, most systems are not high enough resolution in the first place to hear the loss presented by DSP use. Once you have a system that can audibly reproduce and convey sound accurately, you will realize the loss in complex sound waves due to DSP limitations.
Until there is a next level conversion in DSP which also has the power and memory to do it, I won't consider DSP for anything but a surround system, which I don't own.