a digital signal is still analog voltage passing through the physical wire, in rounded off square wave shapes
True.
... so a poor cable exaggerates transmission error to the receiving device.
No, it does not.
Unlike an analog signal, a digital waveform merely indicates whether a bit is on or off (1 or 0). Any voltage (amplitude) above a predetermined threshold means a 1. Any voltage below another predetermined threshold means a 0. As long as these thresholds are met, the bit will be set correctly and it does not matter how clean or how awful the analog representation of the waveform might look.
Now, some cables might pick up EMI and RFI along the way, which might adversely affect sound quality if any of the connected components are poorly designed and / or built, but that is completely independent of the digital data transmission per se.