You wanna do a test? Set up 3-4 mics on a drum set. Botnick style or however you choose. Or hell, 1 mic hanging over the snare periscope-style will do the trick.
Record at the highest resolution your AD converters can do. Mine do 24/96 reliably (24/192 is still wonky on my rig).
Just hit the snare hard 4 times. Then do some rolls on the snare. Then 30 seconds of hi hat work. Open and close the high hat as you roll on it. Now for your big finishing move, smash each cymbal and let it decay all the way out. Get to silence. Then do a few more with some stick work on the top of the cymbal.
Overall, record about 4 minutes of smashing drums. No compression, no effects, just raw microphone data with basic stereo pan if using more than 1 mic. If you can play beats with fills go for it, but it's not needed.
OK back the computer -- mix it to 2-track stereo and output it. Then dither and downsample it down to 16/44. Make different copies for as many dithering algorithms as you have on your rig (I have 3 installed).
Now go back to your full resolution version and study it. Listen to how long the decays are. Listen to the high hat detail (there's tons of it). Listen to the attack and decay of the snare. Listen for stick noises, breathes, room hum, ambient sound off mic, etc. Determine the virtual placement of the drums in the mix, make notes if you want. How wide is the soundstage? Where is that drum/cymbal located at in the mix?
Once you've made yourself familiar with the drum sound at full resolution, picking out the degradations in the 16/44 files should be easy.
You will hear everything get smaller. All decays will get shorter and harsher, with a cut off at the end that wasn't there. Room noise and breathes will also be less than before. The soundstage will get slightly narrower and the instrument placement will be slightly fuzzy and appear less focused on one particular spot. The detail of the high-hat will start to be compromised.
If you continue this test and take a 16/44 file into LAME and make MP3s out of it, you will hear your beautiful acoustic drums turn into samples made out of cardboard. You will hear your full splashy cymbals turn into 808-sounding digital recreations of a cymbal.
This happens for almost every instrument. Given that multitrack recording is the art of making between 4 and 200 tracks all work together, layered and musical, this degradation of every instrument really takes it's toll.