CDs can support 90+dB of dynamic range, which is pretty great, with much less distortion and noise. A good classical recording can show this off pretty well.

On the other hand, 80s club music is presumably mixed with vinyl distortion (and other features such as rumble/crackle - not to mention analog tape hiss from the original recording) in mind.

A well-mastered digital recording should (and does!) sound great, but I think the problem is that many CDs aren't well mastered and many are overly compressed, often in service of the dreadful "loudness wars."

In 2022 most dance music is produced digitally to begin with, and presumably mastering engineers and DJs have figured out how to make it sound good when it's played in a club.