I was wondering what is the main reason why quite a few studios are giving
up on their 1" or 2" reel machine and going over to digital?

Could the main reason be as follows:

They are not making any money anymore, and those tapes & machines-heads are
too expensive to buy and maintain respectively???

Yet I have seen a number of studios that only have dummy-computers on thier
desk; just to say that they have computers, but they are NOT using them.
Perhaps the only thing install on them is windows 95 & Mac 9.0. lol