Whats the point of converting to a different format.

I recently learned I can convert all my music to any format and bit rate I want with iTunes. I converted 1 song 3 times into the same format (MP3) but a different bit rate each (128, 224, 320). When I converted each one I kept all the other settings the same, only changing bit rate. I listen to each format of the song with iTunes, and they all sounded like they had the same quality. So I hooked up my head phones (since they pick up everything), and they still all sounded the same. Then I thought, maybe iTunes plays all of its music in the format that I have the converter set to. Last, I put all three of my songs on a MP3 player. When listening to each one of them through the MP3 player, they all still sound the same. What is the point of having the option to change the bit rate, if they seem to have the same quality, except for making the file take up more hard drive space.

Thank you guys, I was wondering why what I thought, seemed to not line up with what was going on. Just so I know I understand, wheather I import a song off a cd, or buy a song digitally. What quality they are in, can not be changed, you can only change the size of it? Say I download a song that is 320kbps and convert it to 128kbps. Of course, the size drops significantly,. but there really is no difference in the listening quality?
I have many songs that are 128 kbps and above, and they all sound good enough for me. I also have a song that is (i think) 86kbps, and not so much the quality as it is the loudness, is low. I have to turn everything up as high as I can to make it sound good. If the bitrate really only messes with the size, why is it that the 86 kbps song I have is so low with sound?
The way it sounds, is that I should always, always get the highest quality song that I can. Then, use the converter to take the song with good quality, and make it have a lower bit rate simply for space?
Through all the songs I've ever had, the bitrate (for me) was a good way of telling the quality of the song(I thought was the same thing). It seemed like when i get music, for the most part, the higher the bitrate was the better the quality was. Kind of like that 86kbps song, low bitrate is equaling low sound. Listening to a song can give you a good idea what the quality of the song is, compaired to another. But say i go to get the best quality of my music. and then convert them to smaller files. Is there a solid way to tell a song is good quality and not just converted to a higher bitrate except for listening to them?
Sorry for all the questions, I'm a noob when it comes to the quality of music. Thank you for all your replies.

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