is lossless all its cracked up to be

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It depends on your own biological sensitivity too.

When you compress audio, you are removing what you believe are inaudible sounds. These include extremely high and extremely low frequencies. You also find patterns in the audio data to perform the compression. Since audio generated for a movie is pretty random, you may need to cut a lot of corners to meet your target size for audio at the expense of audio quality. This is why you don't see lossless audio on DVD's or HD DVD's. It won't fit in the alloted space.

People's senses and their exposure to different levels of quality result in different perceptions of lossless audio. This is more of a "you have to hear it to believe it" mentality. Similar to how you thought DVD's were good enough before experiencing Blu-ray.