I use LAME mp3s at 320kbps, and I can't hear the difference compared to FLAC. I settled on that because most things will play mp3s, but other formats would require multiple rips and I can't be bothered. I took a number of tracks where I could hear "artifacts" of the encoding at 128kbps, and upped the bitrate to find out when they disappeared. For me, 256kbps was indistinguishable from CD, so I went for 320.
On CD life, my experience is that every 100 CDs or so, one will have degraded somewhat (or, at any rate, becomes fussy to rip) over time.
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