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.