So Dave, you are saying an AppleTV is worth 1/2 the price of an AirPort Express?
I got an ATV used (here on HTF) to use specifically for streaming music on my main HT. It has it's own monitor (an HP 20" widescreen LCD) so I can just turn on my receiver and call up any music I want to listen to. Yeah, it's kind of a limited use, but music is at least as important to me for my HT as movies, sometime more important, and the AppleTV makes for a great way to listen to anything I want from my catalog of about 2,000 albums in a few seconds. The entire thing cost about $250 with monitor, which I think is quite the deal. The nice thing is, there is other stuff it can do. I just wish I could use it to stream movies from NetFlix, then I would actually connect it to the main monitor, in addition to the HP, so I could use either. So, I sometimes just listen to music, with the main monitor off, and I often watch sports on the main monitor while listening to music, which I can queue up and select independent of what I am watching.
It is a seriously cool setup. BTW, I have experimented with lossless compression, but ended up doing all music from CD with LAME in HQ mode at 320Kb/s. The sound is excellent, even with my incredibly unforgiving Thiels. Besides, I have all the CDs and if I want "no compromises" playback, my best solution is to play the actual CD on the absurdly good CD playback system, which cost 10x the ATV system.
I haven't actually done that in a while now, as I have been pleasantly surprised by the sound quality I get form the ATV, going optical to the receiver, of course. I doubt its D/A converter would impress.