You're slightly off the mark here. Yes, a computer can read those MP3s on your CDs, but what happens if you put them in a bog standard CD Player - they won't work. Same with Blu-Ray or HD-DVD. Yes, you can store any format on them via a computer, but could the players read them? No. The players have decoders for a specific set of codecs - they won't play a Word file, for example.
The argument here (which has gone round in circles several times due to a lack of information on the subject) is that the
standalone players on either side of the fence don't play the same files, or one's better quality than the other, or something.