Gene, what's up?
Gene, I have to admit that while I was reading your review on this system, the whole time I was thinking that Yamaha made a MAJOR blunder in not being able to, at the very least, distribute AAC and AAC+ encoded music from iTunes (never mind the protected format that is the default for iTunes purchases).
I'm no expert and I don't profess to be better at this than anybody else, but these are major features that have been left out! I encode my CDs in AAC because it sounds way better than MP3 does at even 1.5x the sampling rate. iTunes is a major player in the music space and one would think that including the technology to recognize and distribute this format would be included in a $2K system.
The other point I have to make on this is that while this system does many things very well, almost all of it can be replaced with a $129 Airport Express with AirTunes and a Mac/Windows system (which most people already have). I had looked at the older model (the 1000) by Yamaha but could not justify the $600/room price + the server when it was easier to buy Airport Express modules and plug them in wherever I want music. You can distribute any music to any area from any computer on the network that has access to iTunes. So it seems weird to me that this system would have much more to offer than simply relieving your computer system of the processing hit it takes when sending music around (which is not a lot anyway).
Don't get me wrong, it looks like a great system and I like the improvements made over the previous system, but the price is difficult to justify for what it is doing, especially when you consider that you can do the same on a regular computer. Heck, with the new Mac mini, the MacBook Pro, and the iMac, you can use FrontRow to do all of those things over the network both wired and wirelessly with music, photos, videos, and DVDs as well and for a lot less money. Just my $0.02. I was surprised that iTunes was not mentioned in the review, even in your wish list... despite the obvious marketshare it holds.