Tracking - Digital Out vs 8xMulti Outs?

Assuming you have an interface that supports both, what is the best overall solution for tracking? While the digital out doesn't lose quality during conversion, the final mix can be blended more accurately if multitracked via the 8 outputs.

Which would be the better option?

Well you sort of answered the question yourself didn't you. The digital out is a final mix, and won't allow you any place if you are sending it to a DAW. If you ARE using a DAW, using the 8-outs is the way to go. I prefer having that extra ability to change things down to the last minute before final mixing and mastering. If you're 100% happy with the way things are however, just do it digital, and save the time of connecting all those cables.

you also have the opportunity to track out two tracks at a time using the digital connection and muting the other tracks - four passes and you are done - eight tracks in digital quality.
i would suggest comparing the digital sound to the analog tracking - maybe you´ll like the analog sound better even if it is not as clean as the digital sound.
sometimes the digital connection gives aliasing or sync problems if not using a master clock (not midi clock!!!).

peace jo

and, the digital is only 16 bit 44k if i'm not mistaken...too low for my current setup