I've backed up to apple lossless
I just finished backing up my entire cd collection to apple lossless - it came to well over 200g, which I keep on a FW800 drive so I can have my collection in the studio or at home. I have my mac attached to a MOTU828 and quested f5 monitors, so it makes sense to have my music in a decent format. I transcode the files to mp3 to play back on a 1st generation iPod (still on the first battery!), and even with bit rates over 192, there is a world of difference on both headphones and monitors. Apple Lossless sounds great to me, within the confines of CDs bitrates and sample rates.
Apple could have used FLAC or another Lossless compression, but they developed their own precisely so they could embed DRM into it, and thus open the door for selling it on iTunes. Record labels wouldn't have gone for it otherwise.
If you look at the extension on the file, you'll see that it is an .m4a - the same as an aac file. A protected one (from iTunes store) comes up as .m4p so I guess they could sell full-quality tracks as soon as they have the appropriate bandwidth and customers understnad it won't work over dial-up.
I like it.