Well, CDs may not be "compressed", but they are instead downsampled. It was probably not recorded at 44.1Kz, 16bit. I believe 96KHz, 24bit is popular for studio recording. They likely use more channels than stereo too. So you can take that source audio and downsample to the CD rate, or you can use a high quality encoding that preserves more of the original signal in the same bitspace than plain downsampling does. It's a bit like how that compressed S3TC texture pack for original UT improved quality, because they could be made higher-res than plain RGBA8 textures.
i personally think the technology should exist to not have to compromise.
or it is available actually, so why the hell not have the option.
something i dream of is a game with the audio setup is kind of like this:
internal sound res: 16 bit, 20 bit, 24 bit
internal sampling rate: 44 khz, 48 khz, 96 khz
audio channels: stereo, 6 channel, 7 channel.
number of audio samples: low, medium, high
bit-rate: 128kbps, 256kbps, ..., uncompressed
OpenAL on/off
we've been at a 128 kbps bit rate for too damn long, and we've been at 16/44 or 48 too damn long.