It all boils down to that age old argument about whether or not the human ear can tell the difference between raw and compressed audio.
The reality is that the number of factors for compressed audio far outweigh those against, the lower definition of the audio being just one of them.
Studies have already been performed to determine peoples hearing perception and have concluded that for the most part people can't distinguish compressed and raw audio regardless of the playback medium's quality (record, cd, $1000 dollar speakers, $100 hifi etc).
when both.
The simple increase in data storage requirements for uncompressed audio is exponential in nature and so who want so have to download GBs of data for say, one hours worth of audio rather than the 100MB'odd they need now for a good set of MP3s.
"Sorry Neil Young but you are just wasting your time arguing with the world", I say. At least he managed to get me to think who he was\is for the first time in the last twenty years which I suppose is an achievement.