Then there is lossy data compression, which also distorts sound, but in different ways. It tends to make high end percussion sound like it's being filtered through bubbly water, for example.
Then they were also taking about increasing sample rates and bit depths, which is another question altogether, and (I think) much less significant than the other two issues.
In these scenarios, over-compression is a legitimate artistic choice: it's meant to sound like that. The problem is obviously when this expectation bleeds out into the rest of the music industry and is forced upon other types of artists by their labels.
I wouldn't mind so much that an album is quiet, if any MP3 player actually allowed me to turn it up to a reasonable level (letting me sacrifice the listening experience on my own terms, when and if applicable.) Why is VLC the only* piece of software to combine volume level and compression-gain into a single output slider?
* Amusingly, the iPod's software knows how to apply compression just-in-time--but it only does it if you've applied a "volume adjustment" pragma to the song in iTunes. And then whenever the song comes up, you have to turn down your volume slider from 80% to 30% to avoid having your ears fall off, because "loud" on desktop speakers is a very different thing than "loud" on in-ear headphones.
It's the (sad) reason why the Beatles' albums have been "re-mastered" and re-released so many times over the years -- our 21st century ears are so used to compressed music that old Beatles albums sound too quiet to us.