... the loss in audio quality suffer through the YouTube process is not that detrimental ...
That’s a subjective assessment and of course you’re entitled to it. In fact, the design of lossy audio software - such as used by YouTube, Sirius/XM, and mp3 files - is specifically designed to minimize the apparent loss of audio quality and it is very, very effective. It that sense it’s rather amazing that those sources don’t sound worse! It’s fine that you rely on those sources for evaluation, but it’s silly to suggest that the loss of fidelity is insignificant.
Let’s put your theory to the test ...
It's not a theory. YouTube uses lossy audio and for some listeners it is r-e-a-l-l-y obvious.

