Sure, we know from basic information theory that any noisy system is inherently discrete. However, depending on the magnitude of the noise, I don't see why we should not describe models in terms of continuous variables.
As an analogy, consider the average numerical computer program. We often derive the underlying math in terms of real-valued vector spaces. However, when implementing the program on a computer system, all variables are ultimately discrete. A reason for not thinking about our problems in terms of discrete objects is that math just tends to get incredibly complicated as soon as objects are discrete; and that the computational substrate is fine-grained enough (in most cases).
Similarly, if noise limits the effective resolution of individual signals or representations in the brain to 5 bits (number taken from the paper), that (in my opinion) still does not mean that we should stop describing computational neuroscience models in continuous spaces -- at least not, if they are validated with the empirically measured amount of noise; which is exactly what Eliasmith's lab (cited above) does (full disclosure: I'm one of his students). Furthermore, as soon as you code information in populations of neurons, the noise on individual connections becomes less important; one could argue that whenever the brain needs precise computations, it dedicates more neural resources to that problem; then, the noise will "average out".