Yeah I agree with you on everything. Although I can hear a bigger difference between 320 AAC and Lossless as say between 192 AAC and 320 AAC.
And the down conversion feature is one that WMP had for years now and I wished Apple would add every time they revise iTunes.
ditto!.
Bandwidth (and HD storage!) get's cheaper every year - They just need to change this, hold a download amnesty on 'replacing with lossless what you've bought at 128K' and move forward having relatively and painlessly removed another obstacle for success. I understand the immensity of it on the infrastructure which is why I'm glad to pay a premium for it but at least offer me the choice!. I don't even mind waiting while it's retrieved from a jukebox and streamed in real time!.
I wonder if Steve pumps out the old 128K AAC through his £50,000.00 home music system ? If he can, hand on heart, say he does - I'll never mention it again and I'll accept the 'new way and the new sound'....