The import settings don't affect the transcode when syncing option, that said it only says 128k, nothing about if it's CBR or VBR. VBR would be better quality, but generally takes a little longer to encode (ideally it needs 2+ passes), so I would STRONGLY suspect that the transcode for sync is using CBR. While I agree you do lose *some* quality, personally I really don't generally hear the difference in most iphone/ipad usage scenarios (the built in speakers are not good enough quality, and neither are the headphones most people use... ie apple's earbuds), if you are an audiophile who has bothered to purchase a good pair of earphones then I can see why you might not want to transcode, for practically everyone else I think it's a great option to have. And yes I already selectively sync only certain playlists and smart playlists, but the reality is my iphone only hase enough storage capacity to get around 10% of my itunes library onto it without transcoding, with that nearly doubles... which is a big improvement in my books...
To the original post, yes it's a pain in the ass how long it takes to transcode, but I'm hoping for an upgrading iMac sometime soon that might make this a little less time consuming, speaking of which, does anyone know if iTunes is multithreaded, transcoding multiple songs for syncing would be an ideal use for say a quad-core i7, though from my limited use, it doesn't really seem like it is to me... (hard to tell what it might be doing in the background, but in terms of what it reports it's doing it seems to go one song at a time on my core2duo imac...