For sure. The even-order harmonic distortion can sound "good" though. It's not my cup of tea but I wouldn't say somebody's crazy if they prefer it!
LPs are a slightly more interesting discussion IMO. Objectively inferior to Redbook audio by a mile. But, given the 30-40dB noise floor even in a "quiet" room, and the THD added by the loudspeakers, I think their real-world performance competes very very well with digital audio...