Currently have all of my music in either purchased MP3/AAC, or for my CD's, ripped in Apple lossless. These reside on my Media Center PC running in a closet. I stream this from iTunes to my Airport Express connected to my family room receiver. I control it via my iPhone. All of my media equipment (Airport Express, 360, PS3, Media Center PC), are hardwired, so no bandwidth worries.
Really, the only big change would be video. Run DVR content through the PS3, since my 360 sounds like a B-17 with engine trouble. If I had the space, I'd rip the DVD content as well. I haven't looked into the quality of ripped/streamed Blu Ray, but if that was doable without a drop in quality, I'd do that too.