Latest news is that selling their catalog without DRM was EMI's idea and they approached Apple. The extra pricing is Apple's idea.

* EMI approached Apple about DRM free tracks, not the other way around.
* EMI is cool with any other music store doing DRM-free tracks. This is not an iTunes exclusive.
* Those stores can put songs in any format they want. The iTunes premium price and AAC 256 kbps format are Apple's Marketing decision.

"Any format they want". I wonder if that includes lossless?

I have to send a few emails methinks.