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There just needs to play some music that’s it. Most of my friends also don’t ask for more. I also listen to compressed files but at least I choose 320 kbps VBR.
And I still buy all of my music on actual compact discs because I love it. And whenever I want to listen to the whole true experience I can still decide to trow in that CD :)

I still buy CDs too. They're often cheaper than the digital downloads, which is crazy. I went through a phase of adding external DAC and headphone amp to my iPod and putting Apple Lossless on, but it got too unwieldy!