Yes, you spend quite a bit of time using higher quality audio when producing, because that is the main purpose of high quality audio - to retain the quality whilst audio is being processed, prior to being reduced in quality to a more consumable format. If you process the audio at CD quality then there will be more artefacts, and potentially a loss of quality. <sorry, I see you're referring to spending a lot of time on ultrasound when producing, not in high sample rates and bit depths... are you making music for bats!?!?!>
I don't think separating senses is over simplification. It's just a technical and logical approach. i.e. okay we're going to design an audio codec > what frequencies can people actually hear? > what frequencies can typical (or even high end) systems reproduce? > do we really need frequencies over 22.05 kHz?, etc.
CD quality is not pathetic. If it were then there would be more than the odd audiophile and sound engineer complaining about it. Any recording of a performance will be limited by the specification of the recording and reproduction systems, nothing is perfect in that regard.
I ran some listening tests for my acoustics degree that indicated to me that 128 kbps Mp3 is surprisingly good and it is not easy to tell the difference between that and a CD quality WAV (some of the programme material was from SACD too so it wasn't just CD quality to low bitrate MP3, in some cases it was better than CD quality to low bitrate MP3, and telling the difference between these was very difficult
We are not consciously aware of all the frequencies that effect us.
Example :you may have learnt in uni about tectonic plates producing ultra low frequencies that scientists have attributed to fear and viloent outbursts such as riots in SanFrancisco ? If not, look into it.
The seperation of senses is obviously a personal view point.
As I have said already on this thread cd's are wank... not just because of the error correction but because of the low sample rates and stupid cut off rates.
Have you tried turning the error correction off . Have you played an unblemished 16 bit cd's over a 20kw sound system ?the difference is quite obvious.