Yeah, that's correct, if I understand your question. Lossless doesn't automatically mean a great recording, just as 1080p (or something) doesn't automatically mean great video. Lossless just gives you what was done in the recording studio. If the master audio track blows chunks, you get every bit of that glorious vomit.
Anyways, when I first got my players, I did a bit of non-blind swapping between lossy and lossless on my HD-DVD player. My impressions are that the lossless tracks' best improvement was the dynamic range, slight as that might be. But, as fmw would point out to you, these remarks are not the most reliable by any means.
I only barely skimmed the article, and Im surprised they give DD that high of a mark. I have heard very, very few 448 kbps DD tracks ever that impressed me. The first I think of is the Incredibles, but cartoons benefit by doing all of their sound in a controlled environment, unlike with live action films. Yea, I think that's the only DD Ive been impressed with.
OTOH, there have been numerous DTS tracks that I've been impressed with at 768 (?) kbps. I think of the LOTR extended versions, X-men 3, among others. While I would be plenty happy with LOTR's Dts quality for all of my movies, I could say the same thing for its video perhaps as well. If only everyone else milked all of what a DVD could truly give, I don't think we would quite need BD yet.
But, alas, this was never the case, and my BDs look pretty sick!