Ripping CDs is laborious. If you intend to keep a digital music collection, lossless encoding is very advantageous because it allows you to later transcode your music to whatever format you might want. I'm glad I ripped my CDs to lossless back when I doing most of it 2002. If I had ripped them to the latest LAME back then, now the codec would be way out of date, and there would be no way I could take advantage of the newer, more efficient codecs available now. Or, thinking really long term, the codec I used might eventually become completely obsolete, then my digital music collection would become more and more obsolete, because there's no acceptable way to transcode lossy formats.
Since my collection is in lossless, I can later transcode to any other lossless codec, or using foobar or Amarok, I can transcode to whatever lossy format (generally Ogg) and whatever bitrate I happen to want. So it makes very good sense to use a lossless format, but I don't pretend it's because it sounds better.
I can't hear the difference beween pretty much any reasonable lossy compression (such as LAME standard). And I don't think anyone else can either. If they can, they could just increase the bitrate to extreme or whatever, then they can't. There is such a thing as a 'vanishingly small sound quality difference' and such a difference is easily achieveable with modern lossy compression. Double blind testing proves it out.