I use ALAC when I rip my CDs because I use mostly iTunes and that's the codec it uses. However, since I don't have a pair of fancy headphones (JBL 22i, you can laugh now), I can't really enjoy lossless. In fact, it's impossible to hear any difference between ALAC, AAC and high bitrate MP3 with them...
I managed to see a difference when my friend lent me his Sennheiser pair. Like "after you see it you can't unsee it", after you hear it you can't unhear it...
FLAC is probably the best because of compatibility. ALAC is mainly supported by Apple and its devices, so FLAC is a better option.
I use 192kbps AAC with my iPhone because 320kbps MP3 and AAC 256 and 192kbps all sound the same with my equipment, so why use huge files when there's no difference here?
@Rodrigo thanks for your comment. Had a pair of ok cans up to a few days ago when my (old) headphone amp spiked and burned them to nothingness. Now I'm relying on a pair of Sennheiser hd 429. Like you say, some cans can't really show the quality of the music. Really looking for a new amp/headphones combo. With decent cans you really can tell the difference and it's like you say, once you hear it, then you'll always notice the difference.
Im waiting for kim dotcom music place for steaming http://baboom.com/ Seem to have the best options in paper from bs that is in market.
Spotify has many problems one of most important not reliable for all the song in 320k and sht station recommendations they do or artist they recommendations that have no connection to music I listen. Use to be a regular user of MOG. And with MOG acquired by beats and than M&A with apple im never using that site unless apple changes the name from beats music [ wtfits] and adds some simple /clean options as MOG had instead of getting lost in bs.