Believe me, great advances were made after that with things like HX Pro which expanded the dynamic headroom by automatically adjusting the tape bias, and Dolby C and S, among other things.
Cassettes could be made to sound as good and with a cassette, you can record, erase, and record again. Plus, being analog, you haven't any of the digital DAC conversion problems.
But I was a little confused. My deck was the TCK850ES, here is a better picture of it:
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It sold for $600 new, which is like $1200 now, at a time when most people thought $150 was a good investment in a cassette recorder! The 850 was actually slightly more expensive than my CD player at the time, another Sony ES: The Sony X33ES. But the 850 tape deck was the #2 in line. The one model above it was the 950ES, which had the transport mounted mid-chassis in a frame and beam construction and sold for $850 back then, but was so much, and really offered so little more over the 850 that I never considered buying one.
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But with an amorphous head, 15-21,000 Hz freq. response and +76dB of SNR, these were undoubedly some of the best tape decks ever made.
I still have albums from the 1960s that play so clean and quiet, that you can't tell the needle is on the record until the music starts playing. Everything you say about the mp3s is true, but it's main advantage is
convenience. The true ultimate art of home playback audio is to approach the level of being indistinguishable from the original live performance.
I can come convincingly close to recreating the sound of having the Led Zeppelin band right in my house playing right in front of me at true concert levels (+135 dB). A few neighbors and police have even confirmed that fact.

I just can't do that quite to the same level and degree of quality, listenability and realism at all with any compressed digital file. Uncompressed 22-24 bit digital you can, but who has that other than a professional mastering studio?