You CAN burn them to usable CDs However the bitrate from the Apple Store (160) is NOT as good as they say it is on a good stereo. The bass end is just not there. I checked on my car stereo through my hardwired iPod. At kbps for kbps the file sizes are the same, so there is no real saving there. I haven't imported a CD with it yet, but I think this is more about the Digital rights thing than real quality.

I'm in France so I have not been able to try this out myself, but:

you're supposed to be able to burn CDs. Is there anything that stops you from then ripping those to MP3? One another machine if need be?