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It's a pretty good price yeah.
Why so many manufacturers (to name one, Creative with their Audigy) claim to have 24 bit capability? That's pure marketing my friend. The same reason they use musical watts and RMS watts with speakers.
Someone that doesn't know anything about this bitdepth mumbo jumbo will see a 16 bit card and a "24 bit" card for the same price. Which one do you think he'll get?
About the cd's, well your dad is right. 16 bits will suffice to get you a decent recording. An (normal) audio cd is per definition 16 bits, 44.1 Khz. So with a consumer soundcard you have enough to make a perfect cd (in theory).
But fact is, with high grade soundcards you'll get better recordings. You can apply effects, compression, whatever you like, on a qualitatively better recording. And only on the end, downsample to 16 bit, 44.1 kHz to put on cd. And assuming the dithering method is good, you'll get a better sounding cd than you would if you recorded it at 16 bit right away.
Of course, it's not only the soundcard that matters. In the audio business, a general rule is applied : the weakest link of the chain will determine the overall quality. If you use a state of the art soundcard, but use old needles on your TT's, or your cables are crappy, the soundcard won't make up for all that.
And don't forget : on commercial cd's, there are trained people that are working on the mixing and mastering. These guys/girls have been learning years to get their job done good. So it's quite normal that your cd's won't sound as good as commercial releases (unless you are a natural talent).
If you're serious about your recordings, buying a M-audio won't disappoint you. Keep in mind those cards are made for audio. So sound for gaming or stuff like that is an extra on those cards, not a certainty (except on the Terratec DMX cards)...
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