AAC is my sentimental favorite, but dang me, I still use MP3. I rip with EAC to a FLAC image with cue sheet. I use the FLACs for playback at home through my good audio system. For portable use, I then rip again with EAC/LAME to MP3, individual tracks, constant bitrate, 320 kb/s. For now, with the moldy old MP3 format, at least I know that my rips can be played on the iPod or on anything else on the market.
That being said, on some fine day...
Someone else will market a portable player that is as well designed, as usable, and as plain cool, as the Apple iPod line.
Apple will add support for gapless ripping and playback of AAC to both iTunes and the iPod.
Apple will quit shoving the proprietary Apple Lossless format (that absolutely
nobody but them will ever support - even if Apple would let them) down our throats and support FLAC instead.
Apple will, in lieu of or in addition to, gapless support, add support for cue sheets to iTunes and the iPod.
THEN, I will switch to AAC. But by then, we might have antigravity, hyperdrive, and cars that run 100 miles per pound of bull****, of which supplies are abundant, infintely renewable and supplied free of charge by the U.S. government.