Only Kaleidescape can provide the quality of 4k and lossless audio.
While I agree with what you have to say, this one point is not correct.
Kaleidescape is an excellent solution, but has a specific target audience. Those spending $10,000+ on a custom installed home theater certainly are that target, but players like the Dune HD Pro 4K are capable of 4K UHD playback of movies with HD audio formats including Dolby Atmos for those in the DiY crowd.
IMO - Kaleidescape is best. I've seen it in action and it is the best movie playback device on the market. It does a better job than the competition by a mile. But, for the money, it darn well better. For those who just want to have access to their movies in the best quality and don't need the rest and are willing to setup their own NAS in their homes and jump through the hoops they must jump through to get it working, then products like the Dune can deliver the audio and video quality that they are looking for.
I've shown my buddy who is (was?) a dealer for Kaleidesccape what I have and we agreed that for the money it certainly delivers. But, it's not the same beautiful experience that Kaleidescape offers.
The question of legality of ripping discs you have purchased to a hard drive has also been a huge question mark and Kaleidescape has been fighting the good fight for years with two laws that are in direct contradiction to each other (DMCA vs. Fair Use). Still, I haven't heard of a single person who has ripped their own movies to be prosecuted for doing so when they are NOT sharing those movies online with others. There are certainly plenty of programs which make 1:1 rips possible from discs.