[skinnymuch]

As a non audiophile but someone who always chooses 320 Kbps perhaps more so for placebo than anything else, why do you not need hi-fi playback if you are an audiophile? Similarly, do you listen to Spotify or other music at 320 and notice a difference between that and 256 or 192? (Which I think are the other bitrates Spotify provides)

[usrusr]

A core principle of lossy audio codecs is leaving out information that would be masked by other information. But the masking will only happen if that other information is actually reproduced as expected. If, e.g. through a lousy frequency response curve, the masking information is not as loud relative to the masked information as it should be, the difference between would-be-masked present (lossless source) and would-be-masked absent (lossy encoding) will be much more noticeable. Same for the masked information: if played back through a system that distorts the masked part into something that would not be masked, the distorted version will be missing from what you hear in the lossy version but present in the lossless on. Again a noticeable difference (and just because the audible difference lies in a distorted part does not mean that not hearing it would be better, the lossless version would be more consistenct with itself).

Better headphones make the illusions of the psychoacoustic models work better, much like a stage magician will be more convincing with more precise execution of his tricks.

Or in other words: if you are good at identifying the differences between lossy and lossless that might be because you have golden ears. But it could just as well be because you are using tinny cans. (Or any combination thereof)