Apple Airplay Sound Quality


What is the potential for sound quality via Airplay? Is this essential WiFi? Or Bluetooth? What technology is being used and what are the limitations? I've reviewed all the material I can find and don't see that information (in my own non-technical language, anyway).
Thanks,
Art
artmaltman
I think the direction that may prove popular are airplay enabled DACs, essentially a suped up third party version of the airport express.
I'm praying that PS Audio somehow implements Airplay into their PWD Bridge and upcomming digital lens. It would be a killer feature!
I understand that Airplay for audio is the same as AirTunes on Airport Express.
NKBG you are correct, it is really nothing new. It would be nice if they changed the software to be able to stream higher resolution, I don't think any hardware changes are needed.
If i have all my music stored in Apple Lossless format and I'm streaming it directly from my iphone to my airport express and in to my Bryston DAC is it the same as streaming it from my laptop?

In other words, if the files are apple lossless on my iphone, are they streamed that way, or down converted somehow?