BTW a double blind test to prove that even most musicians have a hard time telling the difference between 128/256.
http://www.maximumpc.com/article/itunes_256_vs_128_bit?page=0,1
They ran the test twice, once with the "crappy" earbuds, and once with the more expensive ear-buds. Guess what? People did WORSE with the more expensive ear-buds.
That article won't load for me, so I can't read the specifics of their testing, but I'm going by my own experiences; it's not that one person can physically hear more from a speaker than another person, it's that the second person doesn't have the same level of mental ability to audibly discern the difference in two sound files as the first person. It's largely based on experience; you have to know what to listen for. So if the first person is just better at listening, then they'll be able to discern better. It's analogous to looking at a blurry picture. If you have one person who looks at crisp, clear, high-resolution images often, they will easily be able to tell you that the picture is blurry. However, if you ask a person who is accustomed to seeing blurry images, they wouldn't notice as many of the flaws in the image as the first person.
Although I'm not sure exactly what headphones were used (I'm assuming the iPod stock buds and possibly Apple's $80 or whatever buds) in that test, or what their source was (iPod out of the headphone jack?), it sort of makes sense that they did worse with the more expensive buds. Think about it. The stock buds are not very resolving, so the difference between 128 and 256k would be smaller than on better headphones. Listening to the good headphones even at 128k should sound better than the iPod buds at 256k. Furthermore, if they aren't accustomed to listening to headphones as good as the "good" ones they used in the article, they would have no real idea on what to listen for when trying to discern the difference between 128 and 256k. However, if someone is content with that, then more power to them; the less you can discern, the less you have to spend to be satisfied...but, as I've said before, if you have good enough gear and know what to listen for, the difference is quite clear. For my portable rig, I use an iPod Nano 4G > LOD (Line Out Dock, a cable that lets you utilize the iPod's docking port as an audio source for an external headphone amplifier [provides better sound than the headphone jack; avoids use of the iPods (crappy) internal amplifier and (crappy) associated circuitry of the iPod]) > iBasso T3 portable headphone amplifier > Yuin PK1/Yuin G1A/Head-Direct RE0 headphones. I would be quite surprised if the setup they were using in testing were comparable to what I use. Now, of course, there is definitely a factor of diminishing returns in the world of audio, and there is surely placebo effect; after all, to the individual, the listening experience is completely up to interpretation. However, there is still a very real factor of returns within this realm. A lot of it has to do with personal preference, as different headphones/speakers will have a different sound signature, if you will, but there are levels or tiers of sound quality that components are capable of replicating, and unless your gear is capable of reproducing reference-level audio quality, there is still room for improvement, whether you can hear it or not. If not, then good for you. If so, you might find yourself on a begrudgingly slippery slope to audio bliss...and an empty wallet.
Oh also many musicians have damaged hearing, to some extent, from being around loud music for years.