Yes, but it's also safe to say there are those who use 20$ headphones, are satisfied and don't ask for anything more. If you want the best possible sound, then you want lossless files. Maybe there are people who won't hear the difference between mp3 and flac, maybe there are those who don't have good enough equipment to hear it, but if you're serious about audio, then you go for the best possible sound files. Its like movies really. If you have a dvdrip in some standard quality and some 600x400 resolution, it will look good on regular small TV's or monitors. If you get a Bluray format movie, it will look slightly better on that small TV. But if you have a huge full HD plasma or LED TV, it will look stunning and much better than dvdrip. It's the same with music files, whether or not you will hear the difference and how big the difference will be depends on your equipment.
Now, there are 320 kbps files that sound very good and are very close to lossless, so close that most people on most setups won't hear the difference between it and flac.
Edited by derbigpr - 7/27/12 at 2:24pm