Digital speed is for using digital devices for an analog port. It's count per frame, IIRC. Example: if you push the left arrow in tempest, & the digital speed is set to 8, then mame tells the game that the "dial" spun 8 counts every 1/60 of a second if the sensitivity is set to 100%.
Sensitivity effects both analog and digital devices in analog inputs. If set at 50%, it sends the game half the number as if set to 100%. So to expand the above example, if the sensitivity is set to 75% all else the same, mame would send the game a delta of 6 per frame (8 * 0.75 = 6).
Digital speed shouldn't affect analog devices' inputs, but there are cases where it is reported to do so, most that I can't reproduce any more. The one that I can reproduce is a case of incorrect remapping of analog devices to the "...inc"/"...dec" ports instead of only to the "...analog" port; resulting in mame seeing the analog device as digital, and using the digital speed to fake analog.
The reason many need a high sensitivity for arkanoid is the original spinner was geared that resulted in a high count per revolution (
486), higher than older spinners (usually between 96-192 cpr, or 24 to 48 teeth disks). The TT2, TT-HL, & SpinTrak spinners have high enough resolution (1200 cpr) that they need sensitivity closer to 40% (486/1200) than 250% (486/192) that older spinners need.
Centipede has been giving problems for a while. The game only has four bits per axis, so it can only get a max of +- 7 counts per frame. (Most other games can do +- 127 cpf.) So either the game polled the TB more often than mame does, or some other hardware count or something else is going on that isn't emulated yet.
edit: spelling