Hi. Good post Ian!
First, I must agree with you with the idea of the House of Cards, especially in this forum and this magazine. I do think they make a very good job in testing equipment and aiming for the best, but in many cases it's really misleading.
Most reviewers usually end up saying "good for the price", "you won't find anything better at this price", or then they test many products under the title "best xxx under 1000", and they end up choosing the one which costs 999.99. But even then, at the end, they say "but not as good as my many million xxx.
Hence, I like your comments, especially 1 and 2, regarding whether people can actually hear a difference in a "real environment", and what I understand by this is simply the environment and conditions where you usually listen to your music. I enjoy listening to music, and I want to get the most out of it, but I don't really call listening to music sitting in my sofa for hours changing sources and components, and just listening to a 5 second extract to see which one sounds slightly better. I'm talking about real differences, which will make you miss, let's say for example, your equipment, when you're using another one. Or put it this way, suppose you had two rooms in your house with different equipment. One system is better than the other if you would only listen to music in one of them, and never in the other.
Regarding the original purpose of this thread, I must say that I'm a big supporter of lossless files. Generally, and especially in your home environment, listening to lossless instead of mp3 doesn't really incur a bigger expense. Hence, I'd always recommend to listen to lossless, even if it's not possible to tell them apart. Just rip all your cds to lossless and that's it. An ipod worth £150 can store 160 cds in lossless format. These 160cds would cost at least £800, hence spending around 10% of the cost of your music on the source it's really a good deal in my own opinion. So this is my response to what you suggested, "Shall we bring it on and maybe save ourselves thousands of £££ in future?".
However, the matter of choosing which source to use can make a huge difference in the cost of your equipment. There're cd players for £50, and some for 100 times this price or even more, around £10,000. Is it worth it? Or, is there at least any difference in a "real environment", as described above? That's my question and that's what I want to know!
Cheers,
also, can you check my other post, iPod playing lossless vs CD player, http://whathifi.co.uk/forums/p/12574/83021.aspx#83021, and tell me what you think?