iTunes does play MP3.
When we were talking about lossy bit rates 96kbps or 128kbps etc three decades ago then AAC probably did sound better than MP3 at those lossy bit rates.
But bandwidth is better and drive space is cheap. Anything in the realm of 150kbps and better probably sounds transparent. And LAME at V3 (the worst variable bit rate setting) is probably transparent for 99% of recorded files and even if there was a difference, the listener probably won’t be able to tell which file he prefers. I choose V2 because it’s one step up and an additional “level of assurance” of complete transparency.
For those anal retentive, any time you rip a CD in standard fashion, you are introducing ERRORS from the CD-ROM’s misread of data from the optical CD. The only way out is to use an error-free reader when converting to wav (Exact Audio Copy).