Yes, the goal is to save space for portable players. However, I think you misunderstand the concept of lossless encoding in this context. If you downsample from 24/96 flac to 24/44.1 flac, you have still lost information, even if it is still above CD quality by being 24 bit.
So the information that is lost going from 24/96 to CD quality flac, for instance, is going to be processed in a different way than OGG or MP3, each is based on a different subjective measure of what humans here as important. Whereas FLAC, and all lossless encoding methods are designed upon a design for a 1 to 1 equivalence of not losing information while minimizing file size.
To my knowledge with encoders I use, the MP3 max limit is 320 Kbps, but OGG is 500 Kbps, and bit for bit, OGG is usually considered better than MP3. Given that these are designed for maximize the most important information in downcoding. I think it might be reasonable to consider an original ~2900 Kbps 24/96 FLAC, downcoded to 500 Kbps OGG vs. 1411 Kbps WAV equivalent to lossless ~1000 Kbps FLAC. The 1411 WAV or ~1000 Kbps FLAC are already lossy in this case.