Unfortunately, music CDs aren't all equal and if cr*p gets put on them then cr*p will come off of them, whether played via a £850 CD player or ripped to FLAC and played via a £850 streamer. Convert that cr*p sounding CD to <- 256kbps MP3 and your originally cr*ppy rip is now even cr*appier. Convert it to lossless flac, and you still have the same cr*appy sounding original CD in flac format. There's no way around it, the source is vitally important...but only if you consider sound quality to be important.
I'd surmise that a good percentage of people just don't consider (and have probably never considered) 'sound quality' to be that significant but have enjoyed listening to music nonetheless - and that's people from every generation, not just recent ones. Low quality sources - like MP3 - were therefore always going to succeed because they tap into a majority disposition. People that enjoy listening to music and also care passionately that the music actually sounds amazing are a minority group I'd say...and I'd dare to say that some that think they are in the latter group actually belong to the former, which confuses matters.
To me compressed music is an insult on top of an insult (cr*ppy sounding CDs) when listening via hi-fi...and whilst I admit it was the same for vinyl as well (I had some really, really abysmal vinyl recordings easily equal to some of the worst CDs!) things definitely seem to have got progressively worse, not helped by majority acceptance of things like 64kbps streaming services, and people's insatiable appetite for music rather than an appetite for a musical experience.
To nail my colours to the mast, I can often tell the difference between a 320kbps stereo mp3 and the equivalent lossless track, but when the source is good and or very familiar; sometimes it's just one or two differences in a track that your brain picks up on - of course it won't be every note - and sometimes it's many differences. But once your brain has alerted you to differences, and the differences are perceived to impact the sound quality in a negative way, then no amount of rationalisation will allow you to accept the differences as anything other than inferior. Just knowing this can affect your listening experience.
There's more to enjoying music than hearing it through the ears though. We experience music through emotion, vibration, etc. Deaf people dance to music and enjoy 'listening' to music I read somewhere once. Apparrently the area of the brain that is activated in hearing people when listening to music is activated in deaf people when 'feeling' music....and the two experiences are considered 'equal'. Anyhow, I read that somewhere once.