Yes, IMO the perceived difference in quality will not be as significant in music that's blasting one bass note throughout as opposed to a composition that utilizes a greater range of sounds and timbres of multiple different instruments (e.g. shitty party music vs. classical symphony). But I guess this depends more on subjective value than anything else.
Actually, you don't need to start turning up the volume much before the difference in quality is really evident in "shitty party music" as well. The reason for this is that low quality generally makes the sound very compressed, and with compression you lose ALL forms of dynamics, so the music will sound flat, muddy, and without the "punch" you so often hear in party music. If the quality tips below 128kbps you're going to start hearing artifacting too, which is really really bad.
I think MP3 is going to die away progressively as broadband and storage mediums grow exponentially. The single biggest reason for its development was the ability to get music in a small enough package to get over early broadband/dial up, and onto early MP3 players(i remember having one with 128MB storage back when it was new. I could only dream of the 4GB i have on my Creative Zen now, and by todays standards thats really small)
With the current rate of internet information and growth in those storage mediums, i think the knowledge of higher quality, along with the ability to both aquire, store and play HD/HQ audio, MP3 is going to be a thing of the past within 10 years tops.
And as evident of my little rant here, higher quality = larger space requirement, meaning you can fit less songs on a MP3 player. Just for those who don't know it yet lolz