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why lossless formats aren't available yet?

The general public doesn't care

Judging by the amount of "pirated" lossless downloads available I don't think that's entirely true.

Practically, it has to be playable by iPods, if a lossless format is to be agreed upon. (and you would need hardware decoder for that format, otherwise battery life becomes an issue.)

If I care enough to buy audio in lossless format, I'd probably spend the money on a CD and just rip it instead.

I do care about lossless format but I don't care about physical products. I'll never buy another CD again but would be happy to pay for a lossless download. Of course there are none, so I frequently find myself heading over to dark side (where there are plenty).

Ditto. Its still easier to download lossless music than it is to buy the CD and rip it yourself (which the record companies would consider illegal anyways).