The 70,000 songs that they advertise are definitely not losslessly compressed songs. They came up with that number considering the file size of a typical song using lossy compression.
As for the quality of the Apple lossless compression scheme... if it's true lossless there will be no loss in sound quality! I've been using other more widespread and useful lossless compression schemes (FLAC and SHN) for a while and they do not do anything to the original waveform. The Apple one shouldn't, either, but I have no personal experience. You wouldn't think they would call it lossless if it wasn't, though.
As for the quality of the Apple lossless compression scheme... if it's true lossless there will be no loss in sound quality! I've been using other more widespread and useful lossless compression schemes (FLAC and SHN) for a while and they do not do anything to the original waveform. The Apple one shouldn't, either, but I have no personal experience. You wouldn't think they would call it lossless if it wasn't, though.