This kind of talk comes from people who have a hard time grasping the concept of digital, or who try to compare digital as analog. These are 2 completely different technologies, and if someone doesn't know or understand it they should not comment on it. FLAC and ALAC or lossless formats - meaning that not one bit of digital information is lost from input to output. The file is smaller than WAV because the 1's and 0's are arranged more orderly. It looks like this (very simplified, of course):
WAV file: 1110000011111110000001010000111100000010000000111100000
There are 21 1's and 33 0's.
That one note in WAV looks like a seiers of 54 bits.
FLAC, and ALAC looks at it like this:31,50,61,60,1,1,1,40,41,60,1,70,41,50
That one note in FLAC or ALAC now looks like a series of 24 bits - a lot less space, and much better packageing of that note compared to WAV, yet the information is exactly the same as the source! WAV, FLAC, and ALAC will all sound identical identical to the source - bit perfect. But there is a caveat: the encoders/decoders MUST be working properly and be of high quality or else, yea, it could sound like crap (as well as any CD WAV playback). iTunes is not a good player for audiophile playback because it has it's DSP functions ON all the time by default - even if you choose OFF in the preference they are still ON. Just like an EQ where you can push the NO EQ button but leave the unit ON and noise is heard - same with iTunes. J. River, Foobar, and a few others will completely bypass the DSP functions allowing for bit perfect playback.
Now on mp3 lossy encodings things go south much faster - literally. mp3 analyzes the music signal and using an algorithym it decides how much information it believes most people will not be able to hear - KEY PHRASE: "it decides how much information it believes most people will not be able to hear". It will then throw away that information from the song. How 'bout that! The different rates of mp3 encoding will determine how aggressive the amount of information thrown out will be, but on average a 320k mp3 will have thrown away 40% of the original music's information. For some people this is fine as they may not have that good of hearing, or they're equipment may not be that resolving (portable mp3 players, cheap headphones, noisy inviroments, etc). But there still are some people who have traained there ears to notice these difference's. People like musicians, conductors, and of course people like us who love music and know what real music sounds like. Personally, I don't want ANY part of my music thrown out, whether I can hear it or not, I want it all there.
One last thing to remember when talking about which is better, WAV or FLAC/ALAC, WAV cannot hold any metadata information, but FLAC/ALAC can. Metadata is the information like artist name, song name, album cover art, etc that we NEED when we play music on a PC. WAV files were never designed to handle these things, whereas FLAC, ALAC, and mp3 can. You would have to manually enter each song, artist info, cover art, etc for each WAV file you have, and the worst part is that the PC cannot save it to the WAV file directly so it must save it in another location, thus if you copy the songs to another drive, player, or whatever that information will not be there and you'll have to re-enter it all over again!
FLAC/ALAC is really the only way to go when using the PC as a music playback system.
Jimmy