From the article:

The structure may be flexible; it may vary over time; it may evenly or unevenly distribute tasks, power and resources over the members of the group.

Evenly distributed power is a lack of hierarchy, isn’t it? How does that article support your point that a flat system doesn’t work?

I did a bit of reading and it seems you’re right, but it isn’t quite as simple. You have to compress more, since you have less potential dynamic range on vinyl (so in practice a digital recording can be more dynamic than an analog one), but limiting is more problematic and an excessively limited recording has to be cut quieter or you’ll encounter issues. From what I read, these issues seem to be mainly unintended distortion and, again, needle skipping.

But your explanation makes sense and I’m not quite sure why excessive limiting would lead to skipping.

It’s actually because of the limitations of analog media that analog audio might sound better. For example, you can’t compress the signal as much when mastering for vinyl instead of digital, since you risk the needle jumping between adjacent grooves. As a result, the vinyl version of a song can sound more dynamic.