Some of this is just backing up what BeyondtheTech has to say
(And man, your bash script is awesome!)
Alright, so as best as I can tell, the best general use class in the iPhone SDK can play a large number of sounds simultaneously, but for most formats the hardware can only decode one at a time, putting the rest on software. For stuff like MP3, this is quite expensive. uncompressed (AIF/WAV) or IMA4 compressed (CAF) work best for sound effects because they have hardly any CPU utilization.
So in terms of space saving, it depends on your files, but looking at my own project:
MP3 is about 4-5 times smaller than CAF (ie: 30kb sounds become 120-150kb)
CAF is 2-3 times smaller than WAV (30kb becomes 12kb)
The file size loss versus MP3 is pretty severe, but adjusting things like sample rate or channels could help cut that down. It’s also not irresponsible to use AAC or other heavily compressed formats in your game, but expect slowdown when they playback if your game has fast action or an already troubled framerate.