I know we say space is unlimited but for people who love music (my wife for example) her phone is already bursting at the seams with apps, pics, and videos let alone adding her extensive music library. 192 VBR is totally fine as long as it's encoded properly and saves a ton of room. If someone is an audiophile and wants to keep uncompressed files on their mechanical hard drive to play back through their DAC and $500 headphones, i totally get it. But for a phone with only 32gb of storage being played back on some $20 earbuds, I think MP3 makes all the sense in the world.
I agree mp3 is good enough quality for most uses. It would just be nice to have the OPTION of getting a higher quality copy of it (other than buying the physical CD/vinyl), and just have better mastering in general on a lot of albums. There are some web stores that offer certain albums in higher quality already, but the selection is very spotty. A lot of the storage limitations on phones can be overcome with microSD flash as well, unless you are stuck in the Apple ecosystem. Not that most audiophile hipster nerds are using their phones for listening to lossless anyway.