On the subject of ATRAC, I was given a Sony demo Minidisc (Classical music compilation) at a pro audio show soon after the system was launched.
I found it not long ago and played it on my full sized MD unit, through my HiFi, the results were surprising, it sounded really good.
ATRAC is not that bad.
This is, though, a Sony MD and the recordings are Sony digital ones from their label so I would expect the mastering and encoding to be as good as they could get at the time (1993/4).
Apart from convenience though, why rip everything to mp3/iPod? If I sync up a CD and iPod with the same track and switch between them its easy to tell the difference.