These compressed file formats were a necessary evil and have made a lot of money for Amazon , Apple and others......billions of dollars. Anyone who has seriously wanted to have a big web exposure as a musician has probably made the compromise.
Back in the days of tape some liabilities were tape hiss and those annoying cracks and pops from pressed records and the potential for scratches. The CD came along and the audio improved, then as I see it we needed a band aid approach to make things work in the age of computer music. They did the best they could with what they had to work with. The continued improvement of these formats and the more powerful computer will hopefully soon close the gap between what we had then and what we need now. Some may say the gap has already been closed.
IMO the companies who make the big money online need to take more drastic measures to adopt the better formats. Mp3 seems to have become the de facto term for an online compressed file. Most people refer to their portable audio devices as Mp3 players. I hope we can get away from that. I think there is concern in some circles that an artist making a file for mass online distribution needs to insure cross compatibility by continuing to use Mp3.
Converting to something else may loose customers who still play Mp3 exclusively on their portables even if it sounds better.