Analog vs. Digital - or when CD transfers go wrong

Shelby Lynne has been getting a lot of good press the last couple months about her new album, "Just a Little Lovin'". It's a album of Dusty Springfield covers, and some of them are quite good. But much of the press she's getting is about the overall sound of the album. It was all recorded in Analog. In her blog (which is also a guest editorial in the Huffington Post, she writes:

My new album, Just A Little Lovin’ was made on a 2 inch tape machine. I demanded it. I like working with engineers and producers who love and appreciate tape. I love the sound, smell, and feel of tape. That's why I enlisted legendary record producer Phil Ramone and the brilliant recording engineer Al Schmitt.

I went online to check out the album on iTunes, and sure enough it did have a wonderful vintage sound to it. I bought a couple tracks off iTunes and ordered a CD copy from Amazon. I was disappointed after hearing so much good about this recording to discover that on the CD, as well as the iTunes and Amazon digital downloads, there are several places where the digital audio clips! For example, 3:03 into the first track, there is a nasty clipping in both channels. Again around 3:15. I confirmed it by looking at a AIFF rip of the CD (as well as the MP3) in a DAE and the clipping is as plain as can be. Hopefully the LP doesn't have the same problem (I just ordered it), but considering how this is considered a great audio release, and credited on the CD as mastered by Doug Sax, I'm shocked that he'd let the clipping go on the CD. (I'm betting that Sax didn't do the digital master, just the Analog master.) Here's an example of the clipping as view in Bias Peak: You can see right there in the middle the clipped peaks. Now overloading an analog deck can make for some pleasant sounding compression. But overloading digital sounds really nasty. The clipping is there in the CD, the 128k AAC from iTunes and in the 256kb MP3 from Amazon. They vinyl just arrived today, so I'll give it a listen soon and see if it has the same flaw. I hope it doesn't. But I'm really, really surprised that the CD and digital versions of this album were mastered so poorly. And I'm equally shocked at how many people are saying this is one of the best quality recordings they've ever heard giving the clipping problems.