The loudness war (or loudness race) is the music industry's tendency to record, produce, and broadcast music at progressively increasing levels of loudness to attempt to create a sound that stands out from others.
When comparing two recordings with different levels, it is likely that the louder one will be regarded as sounding better.
Ref: http://en.wikipedia.org/wiki/Loudness_war
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A 2 minute explanation of the topic http://www.youtube.com/watch?v=3Gmex_4hreQ
However, The downside of this is that it effectively limits the dynamic range of the music you're listening to.
Personally I'm not an audiophile, and I hadn't given the topic much consideration until a friend got me thinking. I mean, sure, if you're going to be listening to music on your ipod while you're commuting, driving, clubbing w/e, you might want loudly mastered music which can be heard over the background noise, but it robs the music of a certain degree of subtlety and nuance when you're listening in a quieter atmosphere.
And I personally believe music is one of those things where you're not really getting everything out of it unless you're sitting down in a quiet place and giving it all of your attention. The thing I found most curious was the way the remastered versions of The Beatles songs had been steadily increasing in loudness.

