Sorry... But who the F**K uses the Photo Channel anyway? It's pointless, just like the News / Weather and Everybody Votes Channel.
I've not used it for any real use except to see what it was.
As for AAC over MP3. It's a real load of bollocks and there is possibly some backhander going on somwhere.
To keep the dummies satisfied.
AAC can produce a slight (but I wouldn't say it's noticable) increase in quality of the same size MP3.
However, it really depends on the bitrate of the file. Which leads to this point.. if you use iTunes to download your music then you are a mug. The bitrate is what 128kbps? A decent MP3 should be ripped at a varibale bitrate of between 200 to 300kbps.
So if you have your 128kbps MP3 and you convert them to AAC or you just donwload same size AAC files, you will not notice any difference.
Hence why, real music lovers will always buy CD's and rip with EAC with a LAME encoder, than download from iTunes.