I don't think ur crazy
I noticed that WAV sounded better than FLAC on my cowon portable player - more relaxed and natural, actually just a more pleasant listening experience so I decided to save all my CD's as wave.
Perhaps this does not apply on XXHE especially if we have separate drives for OS & data but I am happy with my decision to go with WAV I can still get my entire ( modest ) music collection on one small portable HD or a few big SD cards.