The penguinheads, of course, will go to Ogg Vorbis; apparently, there are now hardware devices which play Ogg files. (No word on whether this is done in a DSP chip, as MP3 decoding is, or whether the device's poor little CPU has to decode the OGG files itself, undoubtedly cutting battery life in half; I'd bet the latter.) Though there may be a window of time during which you cannot legally obtain a new device that plays your "old MP3" files (or even a secondhand one, especially if it relies on Flash ROM firmware which deteriorates within 10 years). All because the recording racket is desperate to preserve its precious scarcity from the depredations of the evil pirasites.
The vast majority of hardware OGG encoders just use CPU, although a dedicated chip has been available for a few months. An advantage of OGG is that it can be decoded using integer maths only, which can save some processing power.