I can easily hear the difference between Lossless and AAC on my two IEMs (Blessing 2 Dusk + IE600) as well as my open-back Focal Clear. And even with Bluetooth via AptX HD.
With the quality of audio improving so much in recent years I would take a guess that almost anyone can appreciate the significant difference in sound quality for < $50.
Same. There's a difference in texture, primarily in the trebles, but there's also a general muddiness and lack of separation. Everything feels like it's been smoothed over, but not in a good way, or too "crunchy". Transients don't have the right amount of bite and the stereo image doesn't feel as three-dimensional. It's harder to hear the "room". Currently using Sony IER-M9 with a Linum DualBax Zebra, which is a great cable, btw.
I feel like if I was playing Audiophile Bingo, I'd just have won.
I mean I can't claim complete 'ignorance', I have more audio toys than many (a "Schiit Stack" on my desk (DAC, mixer and amp) and a couple of "low end" headphones, Sennheiser and Hifiman planars), but by the time you are discussing cables... next thing it's whether wood volume knobs will eliminate unwanted resonances from your sound stage.
Favorite comment I heard on such things: Music lovers buy equipment to listen to their music. Audiophiles buy music to listen to their equipment.
I can too, but only because AAC has such an unnatural stereo presence that I can pick it out in a lineup of codecs with my eyes closed. If it was a direct comparison between downsampled FLAC/WAV then I'm not sure I could tell the difference.
With the quality of audio improving so much in recent years I would take a guess that almost anyone can appreciate the significant difference in sound quality for < $50.