IMO there is no reason to use an uncompressed format like .wav for audio. Or to create .isos from audio CDs either (yeah, yeah, you will find it very hard to create audio .isos, but it can be done...IF you only have 1 track. Theres ways around that, or you can use bin+cue, but really...dont bother)
If you use a good, free lossless codec (I'd agree with with jayfree, use .flac, its got the best support of the free lossless codecs) the eventual output is typically about 50% the size of the uncompressed audio or .iso.
Flac also has other advantages over .wav, like the internal checksum (you can check the intergerity of the audio files easily). Yeah, you can always create checksums for a .iso or .wavs, but the flac checksum is far more clever than that- it doesnt checksum the whole file, it just checksums the audio track. So you can change tagging and the checksum stays the same.
BTW, you can have flac 'image' files. It will be 2 files (the .flac image and a .cue file) but if for some reason you dont want to have albums split into multipule tracks, it works just fine. The tracks should still be playable from any decent media player, though for windows use I would suggest using foobar2000.