Lossless? 1000 to 3000 Kbps? CD Quality? Vinyl Quality? Who cares?
You can't even hear the difference between 160 KBPS and 320, much less 320 and 1000.
This is bull crap. Nobody needs FLAC, ALAC, AIFF or any of those. 256 is enough. It's a phsychological delusion. You just think it's better.
This just isn't true for everyone. Yes, it is probably correct for 99% of people, especially when listening through the cheap earphones that come with iPods.
However, even if your claim is true, there's still a problem: if you have any type of lossy encoding (mp3, aac, etc), it might be good enough that you can't tell it from lossless. But, if you need to convert it to another lossy format (need mp3 versions of aac for a portable player), you quickly start getting audible distortion since each one has different rules about what parts of the sound they throw away that get messed up when fed a file from a different encoder. Same thing will happen in the future when aac goes away some day and you have to convert your files.
With lossless formats, it's not an issue since all the data is there. If space is an issue - and I don't think it is anymore - you could keep lossless masters and make aac/mp3 copies for your iPod you use at the gym. It's like when we use to make cassette copied of vinyl back in the '80s.
Most people don't care about the sound or about the long-term prospects of their media library but a lot of us do and want to make sure our music doesn't degrade - or become totally unplayable in the future.
Of course, media and book companies (and software companies) don't want you to own anything anymore. You should just rent access and pay monthly/yearly fees for music or "buy" e-books that are only playable/readable for as long as the publisher feels like it - or stays in business. It's a scary prospect.
So, I want my music lossless and my e-books PDF and my movies - I'm not sure yet - but it better not have any DRM on it!