The problem is the GIGO rule. Most streams are only in the 32-64 kbps range (minimum for CD quality is 128). Recording it digitally involves a codec that will not give a 100% playback. Starting from a .wav file (ripping from a commercial CD) the sonic quality loss due to the codec is not noticeable unless you are an audiophile the way Paul Giamatti's character in Sideways is an oenophile. But starting from a low bitrate stream the codec compounds an already low quality sound. GIGO
That's why Urth's set up works better, because he is recording the actual FM broadcast, which is of very high sonic quality, rather than the stream, which is not. Someday soon, when everyone has gigabyte streaming and terabyte disc space this will work seamlessly.