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It sounds like you are asking why you would want to master higher quality audio before you convert to lower quality, rather than just convert and then master.
Here is a not-so-distant analogy.
Suppose you have some formula: Y = (3 * X) + 1 (applying this formula is like mastering the audio)
Suppose you will be rounding Y to two decimal places. (Rounding is like converting down in quality)
Suppose X = 1/3 (X is like the audio source)
Now, converting the audio down to CD-quality FIRST is like rounding X to two decimal places first: 0.33
What happens when we plug in 0.33? We get Y = (3 * 0.33) + 1 = 1.99
What happens when we master first, and convert SECOND? We get Y = (3 * 1/3) + 1 = 2.
As you can see, just because you are going to end up with lower quality audio (numbers) doesn't mean you want to work with lower quality audio (numbers). The quality of what you work with will change the final result.
Hope that helps.
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-brash
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