[FLAC] Lossless? Yes.
The hint is in the acronym--'L' for .. (you guessed it) "Lossless".
The flac program has variable setting for how hard it should try to compress the file. It is not a "quality" setting.
Wavpack, on the other hand, does have a hybrid lossy/lossless mode, so seeing a .wv file doesn't necessarily mean lossless there--you'd need the corresponding "correction" file (.wvc) to get back the original file losslessly if hybrid mode was used. I'm a big fan of flac, but wavpack's hybrid mode could make it quite attractive to music vendors since they'd only have to create one master set of lossy/lossless (.wv/.wvc) files for each track and then sell each separately. It would also make it very suitable for mobile players, since you probably don't need the full lossless file for those devices and space is at a premium. Having the data split into lossy/lossless parts also makes it a lot easier for syncing since you don't need to do any transcoding--just copy the smaller .wv file across (assuming your device supports wavpack, of course).
Oh, and "mild DRM"? You're having a laugh there, right?