"Hey, there are these two copies of a song, one was digitally filtered and does not contain all the detail, maybe you can't hear the difference, they're same price/speed/storage which one do you take?" Everyone takes the lossless.

Start introducing different cost (in download speed, storage space, whatever) and peoples choices start diverging.

But as the cost fall and become more identical between lossy and lossless, people will be more partial to lossless on principle alone.

Give it 10-20 years, there will be head-fi streaming services offering lossless movie streaming.