Well, there are a couple of questions you should ask yourself. Are you satisfied with the sound quality of you 128kbps MP3s? Also, do you want to spend the time reripping?
You said that you now have tons of space. How much space do you have? There are a lot of options for higher sound quality.
The first choice would be lossless, like Monkey's Audio (APE). The different settings are not quality options, but compression options. Higher compression settings take longer to compress and more of your system resources to playback. A drawback to lossless is that it requires a lot more hardrive space than lossy compression methods. While an MP3 might be around 10 times smaller than the original WAV, and APE file will compress to only about 50-75% of the size of the original WAV. For example, a 100mb WAV compressed with Monkey's would probably range from 50-75mb, depending on the type and loudness of the music. Loud rock/metal will compress much less than quieter, simpler music. Another drawback is that hardware support for lossless is virtually non-existent. You will most likely only be able to playback your lossless files on your computer. The benefit of lossless is that you have an exact copy of the original WAV, which you can use to burn to CD or
transcode to a lossy format for use on a portable device. Another thing to think about before using lossless is can you actually hear the difference between the original and a high quality lossy file. If you can't, then lossless might just be a waste of space.
There are also high quality options for lossy formats. The main benefit being that they will use much less drive space than lossless. MP3 is great for compatibility with portable players and sharing. Ogg Vorbis is an open source lossy encoder. It's main focus, though, is quality at lower bitrates. Also, at this time, there are no portable devices that play Vorbis. MPC is generally considered to be the highest quality lossy encoder, but again, hardware/portable support is vitually non-existent. WMA could be an option if you're willing to trust your rips to the future whims of Microsoft's DRM policy.
Check out Hydrogen Audio Forums for a lot of info on audio comression:
http://www.hydrogenaudio.org/index.php?s=175e56778ace0ab6d2a09e4275d97b09&&act=idxRob