A good MP3 is the perfect balance between space and quality, the actual audio loss on a stereo music source is so minute that most people will never notice the difference. Frankly I'm not sure that a typical MP3 player is even capable of producing the kind of fidelity needed to make the loss possible to notice in the first place.
The only place FLAC really shines right now is for encoding uncompressed multi-channel audio off of Blu-Rays.
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i agree with conduit, you won't notice the difference between a good compressed mp3 an a lossless flac. You would need a very good ear and high volume to find difference, if any difference can be heard with human ear.