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The main point about MP3 is that it is "good enough" for the purposes it's used for, and MP3 players are uniquitous. The fact that a licence fee has to be paid to Fraunhofer to create an MP3 file is irrelevent, because that's the concern of the software creator, not the end user.
I have an extremely good quality HiFi system at home myself, and wouldn't dream of using MP3s to play my opera CDs (my main musical interest) on that. When I'm in my car, though, I'm happy to play MP3s via my car's iPod interface to the car radio because it is perfectly acceptable in that environment.
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