Really, I can't understand how anybody can be happy with the quality level 128kbps provides!

Because most people are listening on cheap computer speakers through a cheap sound card. With that kind of listening environment, you can't hear a difference between 128 and 256.

A significant portion of my collection is still at 128 for this reason. It was only after I got the Empeg that I realized I'd made a mistake ripping my stuff at 128. I am slowly backfilling my collection with re-rips as time allows.

However, in defense of 128, if you have a good encoder set to high quality mode, then 128 can be fine for a large portion of the pop music out there today. I was using registered Fraunhofer for a while, and it did a decent job at its high-quality setting. (Slow, though.)