Ok, I'm not going to get drawn into another digital / cable discussion as I think it'll be my third this week and I'm getting a bit fed up with it all. On the error control, when data is sent from one device to another, there is always some loss, it's inevitable. In the computing world, transport protocols such as TCP/IP work by handling these errors, requesting bad data is retransmitted etc. and in this, it works as an error-free transport protocol (it was actually developed by the US Department of Defense to cope with broken links due to battle damage etc.). Now, this works on the internet as, in computing terms, the data isn't really required in a hurry - a user can be expected to wait a few extra milli-seconds whilst this is all sorted out. In the hi-fi world though, video and audio data can't just be waited for until it's received correctly - a few milli seconds pause would be seen / heard, therefore any losses have to be dealt with on the fly with error control. Sometimes this is done correctly, sometimes not and this is why the difference in quality is heard.
If you want to debate this, go for your life, as I say, I'm not going to be drawn into another discussion on this. To be fair, my original point still stands. If you can hear the difference, then use the appropriate format which suits you i.e. the sound you prefer. If you can't hear the difference, don't get yourself in a fluster about it, just use the MP3 / lossless format whichmakes the most sense to you, or buy the CD player for the sensible money which sounds best to you, don't go for the more expensive one when you can't hear an improvement. Listening to music is supposed to be enjoyable, not an exercise in science!