I would gladly pay for FLAC or other lossless versions of music, but I'd sooner go without than actually pay for mp3's. They are usually a last resort.
Vinyl is pretty much as good as you can get, but almost no VGM is released on vinyl, so...moot point. CD's are the way to go, but I like the flexibility of FLAC (I like to trim my albums a lot, especially RPG soundtracks, plus I can Wavgain). CD's = FLAC + pretty shelf ornaments.