Yes, you are better off using a more modern compression format than MP3. Descrete sine compression might work but it is nowhere near optimum due to loose codex specifications and not supporting many modern audio compression techniques. For the same file size modern audio compression can obtain much less loss in quality and more importintly even less audible loss.
I keep discs of games incase the makers ever go bust / bancrupt etc when I am older. Yes modern DRM would still prevent you from playing but I am sure there would be no complaints about cracks if that was the case. Well printed discs are pretty indestructable if not regually played, which is especially the case with modern games as they no longer use CD protection crap. Also in some cases it is cheaper than a digital purchase.