Low sampling rate MP3s can be obviously and audibly pretty bad on a good pair of headphones. Once you get to higher sampling rates you are generally in pretty good shape.
The comment in the story about CDs is really ridiculous. A properly mastered CD is really about as good as you need even on a very high end music system in a purpose built room with carefully designed acoustics.
There is no need for a new format. The idea that LPs are better is hogwash. The only time LPs sound better is when they are mastered with more dynamic range than whatever you are comparing them to is.
Now if he were talking about fixing the mastering process that would be a different kettle of fish. What is done to popular music in mastering, especially with dynamic range compression should be a crime. It has destroyed the value of music produced during the last 30 years.
Neil Young is selling bullshit. This is a complete scam he's trying to pull off.