Alright, let me explain one thing here:
I'm a member at H-Audio too, and from what I have seen, it's just a bunch of golden ears who seem to think everything has to sound exactly like the original or it isn't worth their time (in a way, they're worse than Head-Fi users).
Now, I don't want to start a huge war here, but the problem comes with the fact that ATRAC was never made to be "exactly the same" as CD. It was made to be a good approximation of it, but you also have to remember that the main point of it was to make editing songs easier and the like. No solidstate MP3 player has the same flexibility as an MD player when it comes to recording, swapping tracks, naming tracks, and the like. With those type of devices, it's all done through the computer. With the MD, you can do it all through the player, which puts it outside of everything.
Now, I'm not trying to say ATRAC sounds horrible, because it doesn't. I quite enjoy the sound of it, although I am not going to go and compare it to CD quality, because obviously it would lose. I'm just saying that sound quality wasn't the main focus here.
To me, it's like comparing apples to oranges. Explain to me if I misunderstand something, as I am not the type of person who likes to spew bullsh** off as fact, this is just the way I have been informed, and I figure it's at least an interesting read.