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The Beatles issued a huge album in FLAC format as have others.
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It seems like Apple Corps and EMI (the actual owners of the Beatles Albums I think) have a rather exclusive download partnership with Apple Inc. Maybe they will push them in the right direction.
I have to admit, as much as I am not an Apple fanboy. Itunes has pretty much saved the music industry by convincing people to legally purchase music downloads from its site. Now they just need to save the recording industry by increasing quality. Then we can all venture back to the 70's and80's when everyone wanted a hi-fi system to listen to music in their livingrooms.