Analogue doesn’t degrade gracefully. Every time you drive under a power line it becomes completely unintelligible. Meanwhile digital radio can use error correction to maintain perfect quality under heavy interference.
Your point about error correction and perfect quality is noteworthy. Yes, if there is some data loss, error correction can maintain perfect quality, but once that fails, it fails badly. And it's not even all-or-nothing: The radio may, due to an arbitrary firmware configuration, refuse to tune into a stream that is still partially intelligible if it deems the signal integrity or strength to be insufficient. Even very damaged digital streams can be somewhat useful, if you can deal with lovely artifacts like piercing chirping noises when the decoder doesn't know what do to with garbled data.
However an analog signal is ehmm .... an analog of the original. It is continuous. So the error is also analog and you're only limited by the average case. The signal degradation is also analog, there is no sharp cutoff. So as long as human brain can extract the information from the noise, analog continues to work.