...the real reason Sony and their ilk want to stick with ATRAC and even lower bitrate schemes (indeed, quite likely the reason they were permitted any of this in the first place) is that any CODEC acts, in itself, as a very effective form of SCMS whch can't be contravened - it's simply not viable to make sequential copies of ATRAC or MP3 material without degrading sound quality to unacceptable extremes...
Ever see a portable CD recorder? For that matter, ever see a portable MD with a digital out?
I don't think we're ever going to see a 2GB uncompressed MD...