Hum, I find music helps me concentrate on driving (nothing like a bit of Prodigy to help fast driving ;) ). Ok, your ears are probably better than mine, but I find even 128kbit MP3s usefully nice sounding - the main problem has always been that PC sound cards generally (with some notable exceptions) sound awful as they're built to hit price points, not quality.
Still, you could always go for 320kbit MP2's, which are pretty damn near the original waveform (ie, as used by DAB).
Convenience is a HUGE point when it comes to music collections though, which is why I love my empeg so much :)
Hugo