Yep you're spot on. 128kbps is definitely hearable, 100% - you've clearly explained what everyone can actually hear and anyone claiming otherwise is lying to themselves.I was able to discern the difference between the lossless wav and 128kbps, at certain part of a song only, with a room closed, fans off, earphone shoved deep in my ears, with full concentration. At a couple of points in the songs, I could make out the difference. I was able to spot the difference at 128kbps, 160kbps. Difference vanished at 192kbps, and nothing at 256kbps, 320kbps. Though I was using sony earphones (regular, not studio levels ones)
I was hoarding lossless for my listening pleasure and preferred MFSL CDs over regular ones, but I sat down and did this blind test for myself. Then I realised, I would probably never make myself spend $1000s to get hardware that will make me hear the difference. I thought maybe at that level I might be able to hear some difference.
Thanks for clearing up.
256kbps is more than you need for stereo songs
For the record i've got Sennheiser HD800s, a Violetic Amp and a UAD DAC - which comes to something daft like $4500 and you can't hear the difference between a 256kbos AAC file and the original uncompressed either so I wouldn't even worry about the gear being the difference!