> and allows good sound quality for users with fairly low connection speeds.

P2P is all about lowering their costs, not about making better sound quality for low connection speeds. It doesn't matter if you're streaming from Spotify's data center or across the street, slow is as slow does. You're not squeezing more bits through a slow connection because of P2P.

You are right, I didn't express myself quite clearly. But if you are in, say, Australia and you're streaming from a server that is in Sweden there is probably some bottleneck along the way that doesn't allow you to get full speed of your connection. But if you're streaming from across the street you probably get more use of your connection. Your connection speed is obviously the upper limit.

I don't know if I expressed myself any more clearly :)

I have been using this since early alpha and I have never had any slow issues. In fact it plays faster than iTunes

Great, but that's not because of any P2P elements but because your bandwidth is sufficient for a stream.