Well, if with this Apple wants to cater to the audiophile crowd and the likes, they should start by getting rid of the Beats headphone division, and purchase another brand - a serious headphone manufacturer... one that doesn't mean complete and utter garbage by all audio quality standards. Or at least launch this technology with another partner... because there's no way in hell an audio-knowledgeable user would even consider Beats headphones, lightning cable or not.
The reason Beats headphones distort the sound so much is precisely to trick its customers into thinking their music in lossy, low quality / low bitrate compressed formats, actually sounds OK. And to be fair, that's the only way to fit an entire library into a 16, 32 or 64 GB iPhone/iPad/iPod.
Beats headphones are by far the worst and most expensive piece of trash I've ever put over my ears. Seriously.