I don't think anyone is, or should, argue that mp3s are the equal of WAV files when it comes to quality. The point I would make is that some mp3s aren't equal to other mp3s when it comes to quality. Even my non-audiophile mother is going to be able to tell the difference between a WAV and 32 kbps CBR with the command line "-q 9 -m m". For a look at the command line options, see:
http://lame.sourceforge.net/doc/html/switchs.html
Face it, unless you wish to remain pure and stick with WAVs, you are going to get compromised audio. The *only* way of deciding what is appropriate for you--how much of a hit you are willing to take in terms of audio quality based upon the playback medium you are recording mp3s for--is to try some of the formats and see. This is totally a value judgment--am I willing to listen to -alt preset insane and get 20 albums only on my iPod, or -alt preset extreme and get 100, or -alt preset standard and get 500?
http://lame.sourceforge.net/doc/html/switchs.html
Face it, unless you wish to remain pure and stick with WAVs, you are going to get compromised audio. The *only* way of deciding what is appropriate for you--how much of a hit you are willing to take in terms of audio quality based upon the playback medium you are recording mp3s for--is to try some of the formats and see. This is totally a value judgment--am I willing to listen to -alt preset insane and get 20 albums only on my iPod, or -alt preset extreme and get 100, or -alt preset standard and get 500?

