In The Problem With Online Music Tim Bray writes

The New York Times today hits the nail on the head: if you’re buying music over the net, you’re buying it in severely damaged condition. When I plug my computer into the really good stereo at home, the difference between the way music sounds coming off CD or vinyl or a good FM signal, and the crippled version from MP3 compression isn’t subtle. I used to think that if you were listening to music on headphones on a bus or train or plane or in a crowd, the MP3 lossage really didn’t matter much.

Then there are people like me who have a Bose sound system in their car but find out much to our chagrin that MP3s playing off of an iPod sound better than CDs since the iPod has EQs and the car stereo does not.