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I mean it's an option on the sync page to tell iTunes to reduce the bitrate for storage on your phone. It doesn't do it unless you ask it to.
Not sure about iTunes lying but it fits with the general malaise. I'm all for having a physical collection and it makes sense to rip it but I've just not actually played much of it since because streaming opens up a lot of possibility for discovery. I am actively looking for good cd versions of albums though, where the mastering is well done cd is an amazing format.
Airhead
withered_preacher
Is that for streaming? I ask because according to itunes the music on my phone has retained the same bitrate (320 kbps for example) as the music on my computer - I did read though that itunes sometimes "lies" by upscaling music files to make them look higher fidelity than they actually are.
Virtually all my music has been ripped from my own collection.