I despair at the amount of kids I see listening via their phone, not with headphones but just through the crappy little speaker.
That’s why audio quality doesn’t matter any more.
Myself, CDs ripped to FLAC and stored on my NAS, streamed to Squeezebox to the hifi, or another next to my PC. Some day CDs will be unavailable to rip. They’re not perfect anyway, but I’d rather not be forced to a lower quality MP3 as my “original” storage on the NAS. Some sites do offer FLAC but not many and usually less popular things on offer. The chance of higher quality replacement for CD has gone thanks to kids accepting shit quality downloads (SACD/DVD-A/etc are effectively dead).
If it comes to portable I have conversions to the best possible quality MP3 and still use my ancient MP3 player (iriver running Rockbox). I’ve been trying out my phone but the audio quality is shite. It also lacks crossfeed for headphone use.
Car is a struggle. My Civic has no inputs except an optional (and expensive) iPod connector (I don’t do Apple). Just a CD player. Tried an FM transmitter… god awful.