I ask this as part of the sync function because it's also useful to convert various formats of media into ones the radio understands how to play reliably. While lossless might sound great on the home speakers, pushing any more than 192k VBR MP3 out the speakers in the convertible is often overkill. Converting it during sync, and normalizing the volume, is fantastically convenient.
And before anyone suggests using "Tools->Library Tools->Rename, Move and Copy files" know that you can't use that when you're connecting as a MC client to a MC server. Yeah, tried it, doesn't work.
One of my goals is to allow the wife/kids to do their own music management without having them mangle the actual media tracks directly. I'd hoped to use a MC client off a networked library. That works for Handheld sync, but not for the Library Tool function.