Digital Volume Control any good ?

I am playing with the idea of bypassing the preamp and get myself a CD player with digital volume control. Unfortunately I read that this is not a good solution and rather degrades sound.
In the Dagogo web page http://www.dagogo.com/Spotlight/AccuphaseCulture.html
Accuphase is asked a question on this, which I quote here with the answer:

Q: I think it is safe to state that all audiophiles, including many of your loyal customers, have contemplated abolishing the preamplifier one time or another. Coincidentally, with your internationally renowned digital preamplifiers and CD players with high-quality, adjustable volume control, Accuphase seems to be treading alongside those audiophiles as well. What is Accuphase’s official position on the issue of preamplification?

A: Quality pre-amplifier is vital to control and orderly adjustment of signals for a well balanced transmission to power amplifier. We do not recommend connecting the CD player directly to power amplifier, since no CD player can perform optimally when connecting directly to power amplifier. Even Accuphase CD players are no exception.
Digital level control provided in Accuphase CD player is for the purpose of precision attenuation in digital domain, and not for total volume control.
Whatever degree of attenuation you make, the process always causes the loss of digital bit, affecting the quality of sound. We believe that the ideal digital attenuator requires a minimum of the 48-bit DSP that we use in our DC-330 digital pre-amplifier. Playback via a CD player connected directly to a power amplifier may sound vivid at an immediate listening, leading to the misunderstanding that the sound quality is upgraded. However, we will all find later that the feeling of vividness is due to peaky high and lack of bass.

Does your experiece confirm this ?