I have done ABXing...the more detail and range it has, the worse it will be...but really odd artifacts tend to pop up more on either highly compressed music, or synth-heavy music. Not all 128k are bad. I'd wager that half the music I listen to I could not ABX, and much of it I can only tell from that collapsed soundstage (which is difficult to ABX, as it typically takes many minutes of listening to start feeling the difference), at 128k. For portable use, though, even w/ IEMs, decent quality MP3s are fine. It's listening in a moderately quiet home environment, where you can really be taken away w/ the music, that it makes a meaningful difference.
The big problem with that is that having one or two artifacts in one song that are obvious will ruin the listening experience of an entire album, and this makes a difference even when listening on the go, IMO.
You probably won't hear the soundstage anyways with the E3
I'm mildly claustrophobic (IE, you'd never know if I didn't tell you), and one of the few times I've gotten a panic attack from it was listening to highly compressed (both in terms of lossy compression format and not having much range) w/ my E3, because it just felt so closed in. The difference is there, even if the cans suck at it in general (which they do!).
I couldnt agree more. I see people making a big deal about FLAC over MP3, but then they use new remastered CDs instead of the older ones without dynamic compression, which makes no sense.
Yes, but then, some of us b!tch about the new CDs being that way!

On top of that, it seems some newer albums didn't have to be done that way to begin with (Google "Hoffman Californication")! Using a similar example, listening to Blood Sugar Sex Magik in FLAC is just amazing compared to even V 0 MP3...swap over to some NIN, like maybe the Spiral, and I can't tell you which is which. I personally wish more people cared--I'll not be byuing anything new that I know sounds like crap, including RHCP, of which I know I actually like some of the songs, and wouldn't be surprised if I liked their newer albums entirely--if what I'd already heard were not painful after a few mintues!