Indeed. I took some select rock recordings with good dynamic range and re-mastered them to current trend ranges, being as careful as I good to avoid pumping or distortion side effects. I then gave two examples to some people that I know are not serious music listeners, and simply asked them to identify which files they preferred after listening to them. The high compressed versions were always picked. This is no better than anecdotal evidence, but it was still a rather depressing result to me.
Yes. It seems that most people do not actually listen to music today as a concentrated experience. They typically use it as background or accessory music (portable music player on the go or in the very high noise floor environment of a car). However, this is still not a good excuse to destroy the recording, IMO. Now many such portable devices have a user enabled compression circuit to make any music recording useful for background noise. Simply expand this feature to all portable devices, and have it activated by default from the factory. I suspect that most people will never know the difference.
-Chris