You're correct about much that you've observed, but there are sources for digitally downloaded music that's been taken from masters that haven't been murdered by record label audio engineers; HD Tracks, among others. Neil Young's Pono Player is just part of the equation, as he's also committing to back an on-line store where expertly engineered high resolution audio from unadulterated master recordings can be purchased.
Most of large label product that's released in mp3 or other formats have been dynamically compressed to retain an almost consistent volume level throughout any given track. These files have also been compressed in ways that actually remove much of both the highest & the lowest tonal range, in order to achieve the smallest possible sized file.
Stores like Pono, HD Tracks & the others available can hope to address the source file engineering issues, but that then leaves the matter of the other components; a player technically capable of rendering high resolution, technically capable DACs & AMPs if they're not integrated with the player, & of course the headphones, IEMs or speakers the music is presented on.
Across all components there's the opportunity to claim excellence & then collect exorbitant profit from sub standard product; Beats headphones have been notorious as little more than obscenely high priced fashion/lifestyle statements, though more recent reviews report some improvement in both sound quality & in whats been their ridiculously cheesy brittle plastic construction.
As always, YMMV & Buyer Beware. But, if you're interested, take your time, do lot's of research & LISTEN to stuff to determine if it's worth the expense.
