Yeah I'm going for FLAC for home listening myself, and appreciate lossless. And, I also appreciate high-quality masters.
Anything above 24bit/48hz is largely a waste of space, and frankly, and hardly anybody will be able to really tell apart 16/44.1 from 24/48.
However, I wouldn't be quite so quick to say that Pono, as an initiative, is a flop. Consider this: so we might agree the hi-res audio is just a sham, but the quality of music is, for the most part, actually better.
How, you ask?
When companies produce hi-res audio for digital download, they are generally using a different master than what they use to press the CD or create MP3s for digital distribution. Heck, even some FLAC is no better than the MP3s for almost everyone, and if you are ripping from a CD, frankly FLAC is mostly a waste of space, most people will never appreciate the difference between 320kbps MP3 (or V0) and FLAC or other lossless format, when they share a CD source.
If the music industry would stop killing quality music with the loudness wars, we wouldn't even need hi-res audio, as it would bring no benefit if the CD was mixed from the same master as vinyl or hi-res digital.
It makes you wonder if it will remain this way, simply because now the industry can charge more for hi-res audio, and keep it so that the hi-res is actually presented as an audible upgrade. Say it's due to hi-res, but it's simply due to better audio production methods, the public won't understand the difference.
But really it's just a method to dupe the gullible, or the people who know that, dammit, it is the only way to get quality dynamic range from modern music.
We could all have the classical vinyl audio quality but without the clicks and pops and physical degradation of the media, and it should be that way, there is nothing holding back CD from outperforming vinyl.
The vinyl fans aren't wrong in proclaiming that it is better than CD, though they are only right when the CD mix is terrible and the vinyl mix is as it should be.
Though even if they actually presented high-quality CD mixes, the 320kbps MP3 would still suffice for all but the most anal audio purists.
Not that there isn't anything to gain by increasing the bit depth and frequency, but it is a game of diminishing returns, of very very minimal returns that literally takes training to appreciate, and for the most part, once you go above 24bit/48Hz, you may very well introduce artifacting in the upper treble that lessens the quality and accuracy. I think the jury is still somewhat out on if that is truly the case, but as with anything in the audiophile and videophile realm, things will forever be hotly contested with heavy bias on both sides, thanks to very successful marketing and sometimes finding very gullible people. Some aspects of high-quality audio and video are factual and worth the expense, but there is plenty of junk that people swear by.