You are correct, "most people" may not notice a difference. Because "most people" are not audiophiles or enthusiast like "most people" here. The problem is that "most people" don't know what thier music is supposed to sound like. imho. This is an iPod/Youtube generation. Few people are going to actual live performances to really hear what music really sounds like, or are not really using hi-fi equiptment.
This is one of the primary benifits.....I hate having to convert. I just had to convert some 96/24 stuff down to 48/24 (the highest res. an iPod Touch supports) and it took a long time. It would be very nice just to drag and drop, without any restrictions.
True. A well encoded MP3 can sound good for most things, but I find it still has trouble in certain areas. I have found that MP3 does not capture choirs, percussion, and brass correctly in some recordings, and then I feel the sound stage is effected a little...theres just seems like theres less "space" in the recording. But you're right in most cases I think 320 kbps are ok on a portable player for most things, but when I start hearing those descrepencies I panic and re encode everything in lossless to ensure integrity.
BTW I took some A/B comparison test once I found on the internet, and I did pass it twice.