The single worst thing that harms audio quality is excessive compression. It's ruining everything, I'd say. Heck, I'm sure everyone who knows their worth would agree that compression harms audio quality. Recommended reading: https://en.wikipedia.org/wiki/Loudness_war edit: compression as in dynamic range compression, not data compression like mp3 in audio
Dynamic range compression is an important part of the aesthetic of pop music today, like it or not. Pop hits don't sound the same without it. For this reason (unaffected by normalization on itunes/youtube) it will be slow to go away.
The source song, PSY's Gagnam Style, is the epitome of modern pop. I got a 3/10 on the listening test on a decent pair of Sennheiser headphones in a quiet room.
Some people are commenting that modern pop pairs well with 16-bit because of the heavy-handed mastering techniques and that older music thrives under 24-bits. Well, Audio Check offers the same 16 vs 8 test, using a Neil Young track from 1989... I couldn't fool myself into hearing any differences between the source WAVs at all and didn't even attempt to score the 10 soundbites.