Essentially, the images in digital animation are hand-drawn, but instead of being traced onto a transparent sheet of celuloid and colored with paints, the drawings are scanned into a computer and colored that way. So even though it looks like cel animation, everything you're doing has been put through a computer. Disney's been coloring their drawings digitally at least since Beauty and the Beast, probably before that too. The colors can be sharper (if not too sharp, as the first digitally colored eps were a bit bright), and now it's getting more cost and time effective for TV. The only downside: no more cels for collectors!
You read it... you can't un-read it!