firstly, if you're comparing 128kbps with anything else. you'll hear crapload of details lost. Or even worse, congestion. Beats overlapping one another, some of the long notes are cut short.
People usually recommend 320kbps because its kinda the benchmark where all the "information is there". So you effectively hear the song as which it sound be played.
Take bass for eg. You listen to any recent R&B with decent bass. compare 320kbps and a 128kbps. The 128 will feel bloated, not as tight, and you won't get the dynamics.
Now if you wanna compare lossless (wav,flac,alac) with compressed (mp3 in general)
the difference is quite subjective. Many have said that they cannot tell any difference.
I do though, i feel that the dynamics are slightly better. So its kinda a trade off that most people can live with. Because lossless are usually >30mb per file, and compressed at 320kbps are around <10mb. So its smaller space less dynamics.
Note that i use the word dynamic alot, its because its one of the things that i look out for the most, like for eg, the vibration of bass when it goes low.