If the only thing you do with your music is listen, then yes, 24/192 delivers questionable value compared to the more popular 16/44.1 or 16/48 formats. However, all musicians I know use these high-rez formats internally. The reason for that, when you apply audio effects, especially complex VST ones, these discretization artifacts noticeably decrease the result quality. Maybe, the musicians who distribute their music…
I do not believe it. 24 bits is definitely needed for processing (better yet, use floating-point). Not 192 kHz; no friggin' way. Repeated processing through multiple blocks at a given sample rate does not produce cumulative discretization problems in the time domain; it's just not how the math works.
It can be useful to run your signal processing chain at a higher rate because many digital effects are not properly bandlimited internally (and it would be pretty CPU hungry to do so).
But that doesn't mean you need to store data even that you'll process later at 192KHz though it might be easier to do so.