Comment 37 for bug 355846

I posted to the Audacity forum and got some interesting feedback:
http://forum.audacityteam.org/viewtopic.php?f=18&t=14014&sid=f29a500ddd4aee4cad4084becaa2fb6e&start=10

Apparently, the problem is partially fixed on the trunk, i.e., the xrun-recovery code has been improved so that recording will not stop. However, the underlying latency problem has not been fixed, so there is a risk of defects in the recorded audio.

In the thread, I learnt how to configure loopback using the PulseAudio tools. User-interface-wise that was not a pleasant experience, but now I know that it is possible. However, unless Ubuntu makes an effort to make PulseAudio easier to configure, software playthrough in Audacity is a necessity.