I reckon digital TV isn't a bad compromise, actually. Yes, it's compressed and you can see artefacts of that in the picture, especially in the non-mainstream channels that get their bitrate squeezed, but the PAL colour system was pretty compromised itself (and compressed, in fact, just in a different manner) and generated visible artefacts in the picture too.
What DVB does give you is a much more robust transmission standard, so you're more likely to get the same standard of picture in the average home as you would straight from the broadcast stream.
Analogue TV was very sensitive to multipath and fading, and the impact of that was directly visible on the picture as echoes and ghosting. DTV, whilst still affected, of course, does a much better job of mitigating it.
More recent TVs have incorporated pretty sh1te analogue decoders as an afterthought, IMHO, which hasn't helped matters.
So, yes, if you were lucky enough to get a line of sight signal from the transmitter and a good PAL decoder you'd have got a better picture in some respects, but you'd be missing all the Shopping/God/"Regurgitated old bilge" channels that DVB has brought us, wouldn't you?

Contrast it with DAB and DVB has been a great success.
