If you record direct versus condenser mics I would say not and real degradation you would notice.
I run direct into my Digital Camcorder and it sounds fine to me.
I was listening to Jeff Beck on youtube - one of the Live Performances with Tal and it sounded really good. I am running Klipsch Promedia 500Watts for my PC Speakers - Dual Subs.
What may be going on - is people might hear how lousy their playing is or flaws they overlooked - so easy to say Youtube ruined it - sounded killer in the shower with no one listening
