Clarets2, I have used Max and know a few people who do as well. It's great for FLAC on a Mac. As for Apple Lossless vs. FLAC, WAV and AIFF? Well, that's a debated issue....
Here is my opinion (and it differs per person)....I feel like iTunes and Apple Lossless are just as good as FLAC (Lossless) and AIFF/WAV (uncompressed). I have tried other programs (Foobar, dBPowerAmp, EAC), and while they offer some very interesting and detailed features, I feel like lossless is lossless and uncompressed is uncompressed, and they both sound the same. Warning: this is not everyone's opinion and I'm sure they will have their own experience and reasons. I do not disagree with other ways of ripping and achieving music, but I prefer the Apple iTunes way.
With that said, I have listened to systems (Windows, Mac and Linux) that all were able to sound wonderful, and I have heard systems sound different depending on the hardware and software used, so I can completely understand why people have different preferences and tastes.
I recommend to people that they at least start with lossless (ALAC or FLAC). If external hard drive and device space is limited, then lossless allows more music to be stored while still being "bit perfect". For people who are OK with large file sizes, AIFF seems to be the best because it handles meta data tags (artist, album, song, etc.) better than WAV.
Some people feel uncompressed (AIFF and WAV) sound better than lossless formats (FLAC and ALAC), but I haven't been able to consistently confirm this in my own system designs. Lossless and uncompressed sound the same to me when listening with the same computer and playback systems. I have done blind tests with myself and others, and there has never been a consistent preference that showed one was better. Again, some people in these and other forums disagree, but I'm just telling you my experience, and I don't want to disrespect other opinions on this issue and I always keep an open mind.
Like always, you should listen for yourself and make your own conclusions. I have some friends that disagree with me, so I always think a person should do as much as possible to find out what works best for them.
To sum up, I feel like a Mac with OSX Snow Leopard and iTunes (setup correctly), using Apple Lossless (ALAC) is as good as any other solution out there for 16/44 content. I also feel like the newer Macs are the best sounding computers I have heard, even with Windows running on Apple's BootCamp. Windows PCs can also sound just as good, but they require some "tweaking". Both Windows and Mac (and Linux for that matter) can make excellent digital music transports.
I am currently diving into 64 Bit Mac OSX, followed by Windows 7 in 64 Bit. So far I can say that OSX in 64 Bit sounds better. I don't know why, which is why I have another recent post about it, but it does....consistently. I have also been able to confirm that SSD (solid state drives) and lots of RAM improve the sound of a Mac.
One final note....you might read and hear people talking about third party audio software like Amarra and Pure Music....and I have tried them....but I don't have an opinion about them yet. I recommend people get the basics right first, and then research those software options after. I personally do not use them currenty, but my mind is open....
Happy listening.... ;)