iTunes can't compete because it doesn't support FLAC, DSD or ASIO? Is this 2003?
iTunes is capable of playing 24/96, recent iPhones, iPods can handle up to 24/48 ALAC and AAC. It also supports session-based WASAPI in Windows 7+.
The real question is if they're going to support lossless ALAC or just AAC of these 24/48 downloads.