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Originally Posted by Katsunami
Because the number of bits determines how loud music can become.
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Not really. The number of bits determines the maximum dynamic range that can be captured (or, another way of looking at it, the maximum signal-to-noise ratio that can be achieved). Every extra bit adds another (roughly) 6dB of dynamic range. This doesn't have to equate to louder music.
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If the full 24 bits of dynamic range would be used, a 24-bit song would blow your head to kingdom come.
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Not necessarily. More usefully, the extra bits can give you better resolution without changing the full scale deflection of the output waveform. The same maximum signal amplitude can be split into more steps, reducing quantisation noise, and improving dynamic range.
Remember, dBs define a (logarithmic) ratio between 2 quantities (in the case of dynamic range the ratio between the largest and smallest amplitude signals that can be represented), not an absolute value.
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The maximum recordable frequency is the half of the sample rate. A CD has a 44.1 kHz sample rate, so it can record up to +/- 22 kHz.
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You can only actually achieve the theoretical maximum if you have a perfect anti-aliasing filter when sampling the signal. Hence the common use of oversampling to allow the sharp 20-odd kHz cutoff to be done digitally.
Having said all that, I certainly agree that 16 bits @ 44.1 kHz sampling rate is plenty for a delivery format - as you say the real benefit of 24bit/192KHz is to prevent accumulation of errors through the editing process.
/JB