Kruz, I love itunes, I compare it to cd's, I have a few sacd's but no longer have a designated player hooked up, its just not a "real" difference to me that will make up for the convenience... This hobby is a balancing game, you balance, convenience, cost, aesthetics, with sound quality, just a never ending battle of compromises, unless you have a never ending budget, no wife, a designated room, and don't care what it looks like, then sure grab $250K in gear, throw 100K in room treatments all over the place, and put your chair rite in the sweet spot, with $100K in sacd's playing through what ever player is best at the time, ect ect ect...
Here is what I do, I use an ipad/ipod/or iphone because its "CONVENIENT", I use a pure i20 dock that takes the digital signal from the device and feeds it via a toslink cable to my DAC that feeds the amp... I think it sounds really good, a lot of people have heard it and I never heard anyone say its compressed or anything like that....
I love the Ascend towers, very nice speakers, if I were you I would be between them and the Salks....
This would be an AWESOME system if you are into it, I played with this m1 unit and it was SICK, music streamer, dac, preamp, its a real nice unit... very very nice stuff...
$4600 in gear for $1448!!!! They were just listed on the demo sight, I almost pulled the trigger, but I just have no where to put the stuff...
You can buy this setup and buy the extra amp, run them mono and get a sick deal on them heres a video
https://www.youtube.com/watch?v=jBu9RQ4IrrA
heres the sales links
MUSICAL FIDELITY M1 CLiC & M1 PWR BUNDLE at Music Direct
MUSICAL FIDELITY M1 PWR POWER AMP (BLACK) **DEMO** at Music Direct
so that will give you mono blocks at 100w at 8 ohm 200w per channel at 4 ohm a dac/preamp, just need speakers..... Music fidelity makes nice stuff...
If you want to use an avr there is absolutely nothing wrong with that, I just never liked mixing video circuits with music systems and I have a soft spot for "music only" systems... just something about a designated NO video bs system that is sexy, add to that mono blocks, and nice wood veneered towers, you have the makings what some perceive as art...
Another options is apple tv, a dac, and an amp, you can get an xda2, apple tv, upa 200 amp, and be around $700