With regard to purchasing music, I have historically purchased and then ripped CD's without ever actually playing them. That way I get the FLAC files and Amazon would make the music purchased on CD available instantly as 256kbps MPEG3's.
Having a music server with nearly a Tb in music files works well, but I have to admit that my wife and I have been using Spotify a lot.
In the car, for BT speakers, I even have an optical out from my Roku to my stereo. Spotify is just everywhere.
To be fair well compressed 320kbps music is nearly indistinguishable from raw files. Meaning it takes a very good stereo and a discerning ear to tell any difference at all. The only reason I store FLAC files is because storage space is cheap and FUD. Worrying about if I'm losing some spatial imaging which I've yet to notice comparing 320k vs FLAC side by side.
However at 256kbs it is noticeable and at 128kbs, it a glaring difference.