From portable devices I barely notice the difference. I go for LAME MP3 because everything will play it. Ogg might be better quality, but it's not so universal. AAC is stupid, too many apps/devices are not compatible.
@Priidik Yup, Ogg Vorbis is for those with masochistic tendencies, like die-hard Linux users... Vorbis support is historically patchy but seems to become more universal of late, and if your hardware supports that I suppose it should work fine for most.
My usage in this case is portable. I tried AAC, but MP3 is much more universal in that case. Decided to stick with LAME V0. Would be interesting to know which one hits battery life the hardest. I noticed most DAPS show playtime for MP3.
I don't think MP3 is going anywhere for the general public. Though if you're a person who already ponders the best choice for lossy transcoding, I think AAC is the general choice
Compared to MP3, It is significantly better at the same bitrate or equal at lower bitrates. It is MP4, built to improve on MP3 in many many regards.
Don't take my word for it, look at some results: http://listening-test.coresv.net/results.htm
Note that MP3 has an extra ~30kbps to work with and still loses.
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