The problem here is that ogg is essentially a waste of time but for my PCs. We have multiple mp3 CD players at home, one in my car (and soon one in a second car), and a couple of iPods (the old 20G and the new 30G). Hence I use mp3; it makes my life (and my wife's) a heck of a lot easier. There's no shortage of disk space here; my entire mp3 collection uses a small fraction of the 600G RAID array in the basement (480G usable space). There's more than another half terabyte of disk space on other machines at home. Disk is cheap.
Re. bitrate, there are a lot of factors. One is the source material, a second is the target listening environment, another is the encoder (some are better than others), For my car (Alpine CDA-7878, Alpine MRD-F752, MB Quart components, Sunfire subwoofer), for example, 160kpbs with a good encoder sounds very good for most material. It's a convertible, so the noise floor is quite high. But it sounds great when I have the hardtop on too. Less dyanmic range can actually be a good thing here too, due to the high noise floor. On the highway in traffic, the noise floor is at least 80dB if I'm near a truck. You can guess what kind of hearing problems I'd have (and power and capacitors I'd need) if I wanted 80dB of usable dynamic range in such a situation. There are times I wish I had a compressor in the car (wall-to-wall concrete corridors, for example, where rolling up the windows has little effect). Classical music is unlistenable if I have the top down and I'm on the highway. I could compress the heck out of it before encoding, but that takes most of the life out of it and would ruin it when I have the top up.
For the family room, 160kbps is not so good. 192kbps and above is quite good, and 256kbps is indistinguishable from the source for most of my music (assuming a good encoder). But in the family room, I've also got the option of just listening to the original when I want full fidelity. In the car, well, it's tiny and I don't have room to carry a zillion CDs (2-seater, trunk is tiny). I won't give up mp3 CD in my car. Any hard-disk type device would have problems in my car (extreme temperature changes, from below 0F to 100F or more), mp3 CD is the perfect solution for me and my head unit works very well. My next head unit is the Alpine CDA-7998, also an mp3 CD unit. For the most part I've avoided VBR, not because it's worse but because some hardware players don't handle it (they look at the bitrate in the first frame and assume that's the bitrate for the entire file :-(; lord knows what other stuff they're igonring in the frame header, whether or not they lose their minds on corrupted files, etc.).
I'd say WMA is more useful than ogg too, becuase it's more widely supported on non-PC devices. I personally have no interest whatsoever in Microsoft-suppiled codecs, and not a single WMA file.
Make no mistake, ogg is superior to mp3. It's just not supported in consumer audio gear, leaving it relegated to PCs (and I don't see that changing soon, if ever).
