iTunes encodes to 256kbps AAC. that is considered "indistinguishable" from CD for general use (about a 6 to 1 compression ration). Whether that is true, is a choice you would have to make for yourself. YouTube encodes to a large variety of codecs and qualities. So the for best source uploaded to YouTube, from my experience connecting through a browser on a desktop, will sound terrible at 320p or less. will sound acceptable at 480p, and will sound as good as YouTube will offer at 720p or above. results may also vary on mobile devices/apps depending on what YouTube chooses to stream to you.
but YouTube is not a closed system like the iTunes music store. so the first hit to quality is what happens at the submitter's end. if the source is a VHS of a TV broadcast, captured to an MPEG-1 and then uploaded, it will always sound bad. but even starting with a pristine source, videos are compressed before upload to YouTube and then re-encoded by YouTube before being made available for playback so I have believe that iTunes store sourced files will always be less compressed overall.
also, using Bluetooth, adds another compression step.
but considering that a car is a noisy environment and your focus should be more on what is going on outside, than inside, maybe it's all not such a big deal.