Yes, definitely. The MP3 format isn't complete garbage, but I myself probably wouldn't get an HD-800 with MP3s 
Even the HD-650 will sound good with just MP3s. It's less forgiving than some other headphones, but still quite picky.
Once I got a good pair of headphones I completely re-ripped my entire collection to WAV, FLAC and ALAC.
It's totally worth it, but unfortunately a 32gb Ipod touch and lossless isn't a good combination!
Of course some will say there is no difference between 320k MP3 and lossless. Does it matter? I personally would just rather use up the extra space and know I'm getting the best sound file possible.