The big problem with todays music is not with portable music formats it's a lot further back up the food chain in a place where the consumer and probably the artists have no control over.
That statement certainly clarifies what you are trying to say and I have to agree. However, the fact that questionable quality sources are being crushed down to 128 MP3s isn't helping the matter.
In the video, the artists are saying that they feel their creative intent is being compromised and blaming it just on data compression alone is not the whole truth. Let's not give the punters too much technical info at once or their eyes will glaze over and we'll loose them forever
As you suggested, artists may not have any control over the mastering of their material and that is where the problem starts.
So what if they focus on data compressing as a major culprit? At least, if people start at that end to correct the problem, they might eventually find their way to the mastering process.
I still think it's a great video and perhaps to the the "choir" that we are, the message they are preaching seems a bit obvious and incomplete.
However, if this video can get people thinking about audio quality, then the quest for better sound may follow.
I'm not holding out much hope as most people just don't give a rat's a$$ !
I'm setting up shows with crew around me listening to rap music on a smart phone stuck in their pocket and they think it's juuuuust fine. ARRRRRG!!