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midi's suck when it comes to quality of sound.
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Only if you have crappy sound hardware. The MIDI format is completely dependent on hardware and can potentially sound very very good. Virtually every electronic music device conforms to the MIDI standard. So saying that MIDI sucks gives me the impression that you don't know what you are talking about.
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mp3's are far superior when making custom music for your server as it has more options and higher quality.
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OGGs are smaller, and sound better. MP3s are not for creating custom music. True professionals begin all of their electronic compostitions in MIDI format. It is not until later when the song is finished that it is converted into an audio signal such as MP3 or WAV. MIDI is simply a program that tells music hardware what to do and is THE standard in custom music creation. MP3 has more options? Such as?
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So for some people who prefer quality over crap making it a midi is not an option.
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With the right hardware the MIDI can easily sound just as good, if not better than the mp3.