Michael,
The problem with this over-simplified argument is that electrical cables don't know what 0's and 1's are. They carry eletrical signals. 0's and 1's are represented by voltage levels. To make an abstract example 0 to 0.5 v represents a "0" and >0.5 to 1 v represents a "1". Of course the grey area is around 0.5 v in this example.
Don't follow that road. If that was a reasonable explanation for losing bits at the low speeds audio needs, than we would have much higher rates of data loss at the much higher speeds computers use every day everywhere. And we don't.
The reality that is being argued is that "0" nearly always comes out as a voltage between 0 and 0.2 v and "1" as between 0.8 and 1 v. And in the very unlikely event that 0.5 v, or thereabouts, is seen a re-request for the packet to be sent is made. Hence no slightly wrong data is ever used.
I believe that's looking for explanations in the wrong place.
Again, USB cables don't need high spec electrical properties for such low data rates. Every cable will perform flawlessly unless broken.
Even with digital audio through USB, the bits are not sent as they are, they're sent within frames. Data loss can be easily measured.
Better than having people listening to the sound of digital cables, it would be much easier to use a computer measuring lost information (packets).
Make a copy of an entire FLAC album, let's say 1Gbyte from an external Hard drive to the internal drive of a computer through USB (it would take some seconds) and look for the packet loss percentage during the process. You should expect 0% at 150 Mbits per second or more (speed being limited by hard drives, not USB).
But what you're telling is that the same USB cable when used to play just a single track from that same album during 3 or 4 minutes, at 0.7Mbits per second (assuming a 96kHz 24 bits file), it will lose bits (corrupt packets)?
At 150Mbits per second, we have 0% losses.
At 0,7Mbits per second we find some?
How likely is that?
That said, due to the nature of streaming we can have data losses, but those are usually due to source problems (timing or reading accuracy on CDs for instance), not cables.
Just want to add this little detail: Data loss leads to jitter. Jitter can be easily heard by clicks or 'hiccups' in the music being played. It's not something subtle affecting things like soundstage or detail.
Michael