It's not so much a decline in print quality as a different (still inferior, in some respects) medium- think of photography: a digital print vs something like dye-transfer. Arabesques could speak to this , so perhaps she will chime in. The process of one is more of an art, the other is more a utilitarian product, I suppose. There are certain things digital can provide that analog processes can't, but the digital is missing that human touch, in my opinion, it misses some life. Screen printing is widely regarded as producing more vibrant color. Personal preferences aside, Screen printing is still considered the gold standard in the industry, but digital is clearly the future of printing. As I'm sure you realize, screen printing does not mean non-mechanized. Most screen printing is done on a mechanical multi-station press, including at Hermes. Those métier showcases with the printer painstakingly screening a single scarf in a tray is not how they do it in the factory.
In terms of industrial printing, screen printing is costlier to produce. Generally, digital printing is a less costly alternative, and customers choose it for that reason. Fewer steps are involved in digital. In the field I was in, screen printing was art to film, film to (screen) plates, plates to press. Each color required a different plate, mixed by the colorist/ press operator. The level of pressure had to be monitored, so it is an involved process. Of course, more steps mean more opportunities for error or inconsistency, which is why skilled workers are needed. In digital, the process is art to press, the press operator types the color formulas into the machine and loads the materials- no real skill needed. There is more consistency in digital runs, and quality is quickly advancing, but the end result is just- different. It's not so much the visuals of the design as how the color is applied to the silk, and what effect that gives. There are pros and cons to each process. I'm sure Hermes is careful to move towards digital and will only do so with the highest standards, but I don't believe the move is based on a sense that it offers superior quality, it's based on the realities of the day and cost efficiencies. I'm sure they will balance these goals as well as possible.
It is an interesting conversation, and technological advances are amazing, but I always have some sadness for the loss of craftspeople in all fields. I recently spoke with a furniture and antiques dealer who lamented the closing of the last major American hand-crafted furniture maker. I was unaware that this was an industry that had now disappeared in the U.S. All of those craftspeople who had apprenticed and dedicated years to their craft- who will follow them? Will those skills become a lost art? Very small scale companies still exist, as well as individual artisans, but the heritage brands (Baker, Henkel Harris, etc.) have all closed or exist in name only after being bought by overseas companies. They just couldn't compete with IKEA and pottery barn in terms of price.