First of all, the final file format has no bearing on the recording and mixing process (mono Vs stereo Vs surround aside). Record and mix how you want. The mastering dude will put it in the right format.
Second, what you said makes no sense. Don't use 16 bit because MP3s have replaced CDs?
You do know that MP3s are "less" than CDs in every way, right?
Finally, I don't know what to call todays iPod junkies, but "music lover" doesn't seem to fit. I mean, many of them clearly love to listen to their music. But a "music lover" would surely find something that sounds better than a mp3 on an iPod for any real listening.
I said nothing about actual mp3's nor stereo vs mono vs surround so I'll just ignore that. But, why worry about converting to 16bit if it might never be on a CD. As bandwidth and storage space grows throughout the country, so will the size and quality of audio files. When it's faster to DL and UL high quality audio files I see CD's and even DVDs all but dying when this happens because of the convenience of downloading. Right now I'd rather buy a CD because I want the quality but a couple years down the road I'm not sure that will be the case.
Music Lovers and Audiophiles are two different things. Would you say Dead heads are not music lovers because they collect low quality bootlegs.