Digital technology removes some sources of error, but not all. I'm not sure that it addresses the error sources listed in your paragraph below, for example.
Actually you have to be precise here - A lot of Aircraft have Garmin instrumentation and that is digital - however most aircraft sensor outputs are analog - CHT, EGT, Etc. This was also true of fuel quantity as these sensors up until 2011 were primarily analog potentiometers.
With the change to digital recording and transmission of fuel level, there are two methods utilized, both manufacturers looked at the issues related specifically to aircraft fuel level. One system was designed as business jet system but failed in that marketplace and is now applied to GA aircraft and the other is a system designed for GA aircraft that is finding favor in business and helicopter platforms.
Both systems use aluminum as a primary material - (Recent Aircraft analog systems were aluminum as well) - one system is teflon hard-coat anodized to limit aluminum pit corrosion.
Both systems were designed to tolerate fuel contamination and by products.
Both systems were qualified to TSO C55a - so they met a plurality of aircraft related environmental issues - Vibration, Corrosion, Voltage Spikes - and meeting an accuracy requirement during those tests.
Both systems have some sort of microprocessor for fuel quantity processing and outputting some form of digital information - simple or complex.
The limits of these new systems is that GA aircraft use fewer systems in the tank - typically 1 or 2 where a business jet like the Eclipse may use 5. The quantity of senders used relates to addressing aircraft attitude effects on fuel and lightning strike redundancy.
The driving factor for incorporation in GA aircraft was not accuracy or a dis-satisfaction with fuel quantity indication
It was the fact that both of these systems were intrinsically safe - NO ELECTRONICS IN THE TANK - Resistive potentiometers can be made safe in the fuel environment it is done everyday in automotive however lightning issues specific to wing mounted fuel tanks allows an arc to form between the in tank wiring and structure.
Both of these systems though addressed the accuracy issue head on and meet a particular requirement.
Something to chew on - Aircraft fuel gauges are required - however the size of the gauge is not specified - Piper and Cessna used small gauges where accuracy was difficult to ascertain and this gauge size was maintained until the Garmin era - Beech moved to a larger gauge in the early to mid 60's as fuel quantity increased in the Bonanza.