This conversation started out about MP3s in blorbs for web users. But i don’t see why you’d want to put media in a blorb for web serving at all. Surely, it makes the serving of streaming media more difficult. Why not just have all media outside the blorb?
Regarding lossless formats, this is nice for local copies of games, but not nice for web serving of media. Because it’s going to be bigger and cost more download bandwidth. The only exception is Wade’s point about latency. You might want some sounds to be very low latency, such as a mouse click sound. You could afford these to be lossless when such sounds are very short.