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I am actually surprised this question has fallen to the wayside over the years.
It was a big thing back in the days of napster, with the quality of the mp3s, and has since completely fallen away.
To answer your question, correct there is a substantial audio 'loss' when converting to mp3s. You have to realize mp3s are a compressed format.
The best you're going to get is a mp3 with a better/higher bit rating (I don't even know what amazon delivers them at), or one with a variable one. Even still, if you're a real audiophile you'll be able to tell the difference.
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