Lossy formats like MP3 have much smaller file sizes because they remove extra information based on psycho-acoustic theory.
Yeah. That sounds great--in theory.
I don't claim to have golden ears, but I've been around music and recording for quite a while. The First Commandment is: Thou shalt not degrade the source. And that is exactly what MP3 does. Whether you can hear it or not is I guess an individual thing. I kicked and squirmed when CDs came out with a 44.1 kHz sampling rate, that rate is too low by an order of magnitude. Only by using a professional grade DAC with its own timing reference and upsampling to 192 kHz can you get close to what it's supposed to sound like. CD was designed as a "Mid-Fi" format and that's generally recognized. People have mostly gotten used to the phase and clock jitter errors of consumer grade DACs. They actually believe that this is how music should sound. It ain't, by a long shot. People have gotten used to MP3, also. Well, fool them twice, oh yeah.
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