--I've done side-by-side comparisons with lossless formats like FLAC and it is much more difficult to tell the difference.

There is no difference between a CD and a FLAC (or WMA lossless). I had converted all my CDs to MP3 (VBR avg. 192kbit) about 6 or so years ago. Then about 2 years ago I decided to re-rip to lossless (WMA lossless for me) - and I'm still in progress - about 90% there. My usual routine is buy the disc - pop it in the drive - rip - encode - add cover art - and store the CD away like the Ark from Indiana Jones to never be seen again. I do agree with Katherine - physical discs (and packaging) are nice - but for me the music - and now portability of the music - is key to me.