That's a great question
For what it's worth, I do it this way:
I rip the entire album into WAV format, with an appended ID3 tag. I use AudioGrabber, and in fact, have the download available on my sites (it's in the public domain).
Then, I choose the tracks I want, and encode to 320 kbps MP3, with album art, et. al., to another drive. The WAVs stay on one drive, and only the MP3s I will play, go to the working drive.
The bennies I see from that:
I always have the original WAV copies on one drive for re-encoding (backed up of course).
I don't have a ton of filler on my working drives.
I never touch the original album/CD more than once.
My working set of material, never contains more than a few thousand tracks, which keeps my software working robustly, yet I have basically any track I will ever play.
Just my way of doing things...
Edit to add:
I listen to every track on my working drive, in its entirety, prior to playing before an audience. That's why I get the big bucks
