This article would have made sense to me ten years ago but today I feel like Spotify and Grooveshark (streaming audio) is the new radio.
Spotify only streams at 160kbps for non-subscribers using the Ogg Vorbis format:
q3 (~96 kbps) mobile
q5 (~160 kbps) desktop non-paid
q9 (~320 kbps) desktop pay service
And you never know what Grooveshark is going to give you.
I personally can't detect a huge difference above 160kbps and for the sake of my own collection, I used to rip at 190kbps and only 320kbps if it was an artist I absolutely loved to blow my speakers out too. Even then, my ears and sound system couldn't capture the difference.
I don't really see the problem, as bandwidth and memory costs continually drop it only seems natural that we'll migrate to higher bit-rates, especially with the prevalence of so many high-end headphones lately. I would be surprised if Spotify free fully utilizes Beats headphones and don't get me started about people using Beats to stream Pandora at 96kbps...