It took Germany until something like ~3 years ago to finally do the switch.
12.5k NFM has the same signal bandwidth as a timesliced (dual timeslot -- two virtual channels per physical RF channel) DMR or APCO P25 signal.
Digital schemes like TETRA and DMR compress the audio and add error correction. The audio bitrate for DMR is somewhere around 2400 Baud. This means a lot has to be thrown away. As a result, some things confuse the codec (usually AMBE). I have Scottish and Irish friends with strong accents; AMBE makes their voices both indistinguishable and unintelligible.
The second problem is what's sometimes called "the cliff-edge effect" or "graceful degradation". An FM signal degrades progressively as the signal gets weaker. If there's a temporary 'fading', you'll get a bit more hiss for a second or two. An experienced dispatcher or radio operator will often be able to "hear through" the hiss.
Digital signals don't degrade gracefully. The audio quality is perfect up to a point, but after that point things fail quickly. You get corrupted, missing or glitchy audio, loss of control packets (more lost audio), loss-of-sync (no audio until the next SYNC burst, ~1-2 secs)...
Incidentally, analog speech scramblers have similar issues. Rolling Spectrum Inversion scramblers send an FSK data-burst every time the seed (ephemeral key) changes. If your radio misses one of these bursts, the rx/tx audio will be screwed up for a second or two.
Even Motorola has recognized that problem and added options in their programming software that makes the DSP boost higher frequencies before feeding the signal to the vocoder.
As to the graceful vs cliff-edge degradation of signals I've yet to see real comparisons where both analog and digital radios use the same frequency, radiated power and bandwidth (with co-channel interference!). With digital systems, the degradation will surely be much more noticeable, but the real question is whether the critical signal level is above or below that of the analog system.
A lack of ethnic diversity in vendors and standardization committees, which has also led to issues such as the "racist soap dispenser" (https://gizmodo.com/why-cant-this-soap-dispenser-identify-da...).
When most or all testing is exclusively done on White US-english male persons, issues such as a lack of sensitivity/quality for anything diverging from that norm only crop up when it is way too late to fix.
[0] Not to detract from the skin colour issues we've seen countless examples of, like the example you mentioned or the Google Photo fail https://news.sky.com/story/google-photo-app-labels-black-cou...
I'd absolutely love to see a Codec2 based DMR radio, even if it were a firmware mod to an existing radio.
As for the degradation - same. The only data I've seen is from radio manufacturers and the DMRA. Practically it's going to depend on the specific radio, the antenna and so on. You could measure sensitivity as dBm vs error rate for digital or dBm vs SINAD for analog and plot the two together.
Once you cross the line of what the ECC/FEC can handle, things tend to break down very quickly. Most DMR radios will cut out entirely if they see a lot of Post-FEC uncorrectable bit errors.
I suppose you could alternatively keep the existing analog infrastructure and apply an ECC to the analog signal too.
TETRA, the German digital police/ems/... network, uses SIM cards for that part. Pretty easy, if you ask me.
With digital radio on the other hand, a bad signal results in lost chunks. There the transmission is clear until it gets choppy and that's a lot harder to make anything out of.
I suspect this kind of encoding works badly with encryption, as decryption needs a perfect preimage otherwise the decrypted message will simply be garbage. Also, even a slightly increased delay makes for very awkward conversations.