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Well.... except that the version that you buy from iTunes is lossy to start with, as opposed to a lossless CD. Although Apple does have a lossless codec that you can use when ripping from a CD, the quality of music downloaded from iTunes doesn't start out as good. When you burn and then rip to AAC or mp3, you further degrade the sound.
Apple doesn't sell lossless music because none of the lossless codecs so far (Apple, ape, shn, flac) support DRM. Now that EMI is allowing Apple to sell music with no DRM, it would be nice to see if they start offering true CD-quality music for sale.
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