It's not about sound quality. We know 99% of people don't care or can't hear the difference. It's a gimmick to attract more users and remain competitive. Not saying audiophiles won't be satisfied. I can finally delete my local lossless library. I've been managing my music for the last 15 years or so. It's time to fully embrace streaming. I can enjoy 256kbps files on my standard EarPods and lossless music with my Pro headphones at home.256kbps AAC is good enough for me. There's nothing wrong with having the best, but I can't really tell the difference between lossless and 128kbps mp3. I reckon for every 100 people who will swear by lossless, there's probably 1 or 2 who can actually tell the difference.
Will they raise the prices for lossless streaming? I hope not. They should also fix the Music app, sometimes it's buggy, even with iOS up to date. The iTunes app for Windows 10 is really showing its age, time for a revamped app too.