Well a bit more research, and everything's still vague, but it looks like:
- Apple wanted to switch to little endian for some reason with OSX (maybe better for writing CD audio from iTunes? maybe anticipating Intel transition??)
- Normal AIFF format doesn't allow this, so they created an AIFF-C "compressed" codec that actually isn't compressed -- it's non-compressed audio, with the only difference being the byte order
- This should be identified with a .aifc extension, but it looks like they wanted to make the switch transparent to everyone
- It's so transparent, almost no one has noticed it happened
- When iTunes uses the term "AIFF" it actually means AIFF-C/little endian codec
- When you drag audio-CD audio to the Desktop, you're actually getting AIFF-C/little endian files
- This will never affect you in any way unless you are using some older 3rd party audio software that can't read the codec. Big endian vs. little endian is identical sound quality and the two can be converted back and forth without sound quality loss.
- You can still create and use normal (big endian) AIFF files, it's just the OSX OS and Apple apps that are choosing to use the little endian format.
- None of this should be confused with the entirely different -- and openly identified -- newer "Apple Lossless" format, which really is compressed.