I'm just waiting...
I was a beta tester and moderator for the Torq-DJ forums for years (technically, I guess I'm still a moderator on the old forums but they want users to go to the inmusic forums now).
If you got beat up, I'm sorry, the push from the start was to develop a community of people who would listen and share and not come down on someone because they used something else like the fanboys on the Serato forums.
That being said, they've had issues over the years, and I've avoided much of it by using other sound cards. When the Xponent driver freaked out, I had to reset my rig because I was using an NRV-10 for my sound card at the time.
Later I was using a Fast Track Ultra 8R - and still continue to use that for a LOT of my DJ work.
Hands down it's been the most feature rich software on the market and many of the shortcomings are tied to their early choices. For example, the Ms. Pinky timecode engine is likely why there's so many issues for the hardcore scratch artists.
They did make some smart decisions later on - including dumping the flat file database in favor of SQLite (something I pushed to them early on). BTW, I noticed someone else is using SQLite as well.
Despite the software's advances though, the company never really seemed to embrace Torq, nor the entire DJ division of M-Audio. InMusic seems to be doing their typical dump of software like they've done in the past. Sure they did a neat new keyboard software with the Air group but nothing on the Torq front.
On a side note, 2.x seems to be fairly nice for the most part, but there are some serious limitations under the hood with regards to MIDI mapping back to the hardware. And unlike Cross which just requires some hand coding, you're pretty much hosed with Denon hardware with Torq. Trust me, I spent a week mapping the DN-4500 and sent multiple requests in that went to the developers... part of that is compiled and hard coded. And the default mappings were NOT created by a DJ - that was OBVIOUS.
In the end, I'm current caught in a 3 way pull... While I love Torq and it's rich feature set, I'm leaving it for greener pastures, but slowly. There's a lot of work in changing software. The two way pull I have now is between Traktor for audio and Cross for Video. The lack of Apple lossless support keeps me from jumping 100% to Cross for everything and traktor doesn't do video so I'm in a 0 sum game at this point.
Perhaps in time....
All I know is I refuse to move to Virtual DJ, even if they paid me. Serato is too tied to custom hardware (the openness is one of the things I loved about Torq) and the others out there seem to be limited in one way or another.... (Deckadance, Mixxx, etc.)
As for the sound quality issues....
The conectiv has some unusual design choices that were made. For example, the phono pre-amps are rathe quiet. They did that to prevent clipping during scratching but then recording or playback of real vinyl happens at a much lower volume. The output from the computer though is hot as hell. It causes me to play with the gains constantly when I switch between real and TC vinyl.
Stanton went that way to 
Cross feels warm to me with high end audio . 
. now look at Vestax and rane they have sexy looking mixers.
very nice
c00l People MV Society 
Guess I need to sell off 2 Conectivs at this point...