Using lossless as a fail-safe mechanism can't be argued against, but have you ever wondered why listening tests are not conducted for lossy encodings at “high” bitrates (~256)? I challenge you to find anyone who can differentiate (a song, not problem sample-- after all people attend concerts to listen to music) between a MP3 -V0 encoded music and a FLAC encoded music. Yes, using lossless might give you the satisfaction of knowing that “this is as good as it gets”, but honestly, you'd be hard pressed to find people who can differentiate between a lossy and a lossless.
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