I will say that based on only one time, I thought my old iPod actually sounded really good on the Toyota, at least compared to the FM radio or Satellite.

The size of the lowest resolution FLAC file is ~3x bigger than the same file in even the highest quality mp3
Supposedly bluetooth has a new onr coming out that can play lossless.
To get old high quality audio in a car, you will need some higj quality pieces, parts and
coding/decoding equipment.
Spotify and Apples supposedly have lossless and Amazon prime.
It does no good if the system cant compliment it and reproduce sound.

I am big in to music. And I really wanted a 4Runner with KDSS as well as the JBL Audio. Couldn't have both. So I opted with the ORP with KDSS. I do not regret it. I am satisfied with the audio. I turn off all the software-based audio processing, and shift the power one tick to the rear since the speakers are bigger there. I leave the base at factory level and increase the treble by 1. Not ashamed to admit it, but I tend to listen to EDM or classical. Bass is important for EDM. It is good enough audio though. I am content and will not be upgrading.

In my experience, the quality of the audio files matter more if you have a crappy audio system. All my audio files are retail, studio quality. So that helps with clarity.

And yeah, I do not understand why the new generation does not care about audio quality. It's odd because so many of them love music. And if you love music, how can quality not matter?

I have the "premium" audio by the way.