When someone starts selling lossless music at the same prices as either a) iTunes or b) similar to CD prices now, audiophiles will buy their music from there. I only buy music from iTunes if it's something that I wouldn't buy on CD.
I agree with this 100%. I think Apple has plans to offer that content as well as videos above 720p resolution. I think what is holding a widespread, unified, up-comer to the digital music/film/media industry are several limitations that are going to be alleviated pretty well 2 years-ish from now. They are:
Hard Drive space & affordability
Secure, uber-fast, affordable internet connections.
A lot of you will argue that HDDs are already at that point or ridiculously close to it. I am inclined to agree somewhat here. The big problem is that it is an accessory and not installed. Base model computers (not netbooks or ipads mind you) need to come with 1TB of space for a computer and its drive to be consumer friendly.
I know there are a lot more educated people than I give credit for, but when it comes to computer, the majority of purchasers are kind of idiots/uneducated through necessarily no fault of their own. The advent of the GUI, the average consumer knows how to point and how to click on their icons. Ask them to install a printer and they call support. They pay the Geek Squad $120 to run a simple selective startup, defrag, and a couple of other simple as-it-gets tasks. If the user has to think about it or attempt to install it, it won't be mainstream.
The other limitation is network speed, reliability and affordability. Lossless albums will typically take up 300+MBs of space. 1080p movies can take something like up to 5+ GBs. With such massive amounts of data, I am sure iTunes and Apple has decided that the average consumer is not yet ready. That and 1080p is not quite standard for them yet with laptops and their cinema displays (plz change in june plz). To stay on track though, the average consumer has neither all of the necessary tools nor the ear, or stereo equipment for that matter, to support a "lossless lifestyle"™.
I think that these things will become more standard and user-friendly over the next few years. Thinking about it 2 years is prob too soon. Even with HDDs, the expensive transition to SSDs from them will take some time to make massive storage available. I would say iTunes will remain king for the next 2-3 years. People will live the "lossless lifestyle"™ starting in about 5 years. CDs prob have a good 7 years left.
Cliffs:
iTunes for years
Lossless acceptance in 5
CD "dies" in 7