Very interesting post, thanks for sharing. One slight correction: the non-DRM files sold in the iTunes store are 256 k AACs, not mp3s. (However, the non-DRM files that walmart.com has started selling are 256 k mp3s.)
By the way, lossless files are commercially available on a few specialty sites. Check out livedownloads.com (FLAC) and beatport.com (WAV). Whether there will ever be a bigger selection of lossless files for sale is hard to predict.