Can you give some sources? What are these artifacts you talk about?
And even assuming that it's audible at 192kbit/s with a decent encoder, why not just use 320kbit/s MP3 which are still significantly smaller than lossless?
16bit lossless audio is great for producers, you have a lot of headroom for messing with it, re-encoding it, twisting it, amplifying it, mixing it etc... But if you're just archiving public releases for "consumption" it's completely overkill.
>It's like interlacing in movies or bugs at borders of contrasting areas of picture in jpeg
In what way? Interlacing is completely irrelevant in the context of audio.
I'm sorry if I come off as adversarial but it's a pet peeve of mine. The maths and physics behind signal processing are very well understood, if some algorithm induces a signal degradation in the audible spectrum it should be trivial to show it objectively with the right measuring equipment and/or the right mathematical equation.