Apple TV vs. Mini vs, Sonos


I've been reading these forums for a couple weeks trying to figure out the best way to organize a large CD collection (2000 CD's) and to access it wirelessly on two systems. Having a friendly interface for the other family members is important.

At first I was leaning toward a Sonos solution with a NAS attached. Then, I replaced my old IMac with a new one and really like the Front Row feature. I also have an Apple Wi-Fi using Airpport Extreme (the older 801b/g version). Having Front Row available to manage my iTunes library via the video seems like a better solution than Sonos.

He're my questions:

I read that Apple TV won't support web radio. I usually tune in a channel and open it with ITunes, drag it to a Playlist and name it. Whenever I want to listen to it, it's in a playlist. Front Row accesses these easily on the new IMac. I assume they work the same way with Apple TV. Also works for stations accessed through Live365.com, which gives you 10,000 stations to choose from.

I'm not clear why Apple TV has the built in hard drive. Does your ITunes content have to be on the Apple TV drive or can you access your library stored at another location wirelessly, such as a NAS, via Front Row and the Apple TV?

It seems to me that the simplest solution is to use a NAS to store my collection and add an Apple TV to each system, accessing the library via Wi-Fi and connecting the audio via Toslink to a DAC and the video via composite video. Is there a flaw in my thinking? Is there an advantage to using a mini? There's no place in either installation for another screen.

Any suggestions would be appreciated.
bbopman
I've never tried to stream a internet radio station - just my CD collection that resides on my mac mini (if the internet radio station is a playlist it might work)- The mac mini must be on and itunes open so that Apple TV can stream from it (any computer in the house that has itunes can stream to AppleTV (pc or mac) AppleTV has optical out to my Home theater receiver - I've also been backing up my movies onto hard drive and can stream them to AppleTV also thru Itunes (i use handbrake)
With regard to Apple TV - one reason I went with Sonos (tried a Mac Mini as a music streamer with Airport Express) is because I thought it was ridiculous to turn on a 61" plasma monitor (or any TV) to play music. Why generate the noise, heat and waste the energy.

Sonos' interface and portable controller is so convenient. I even take mine outdoors in summer to control the music in the back yard - no line-of-sight required, since it's Wi-Fi.
you don't need a display with a mac mini and airport express. you can use an iphone or itouch to remote control a mini running itunes. sonos doesn't give you the flexibility that a mini/airport express gives you and sonos cost more.
The sonos is an amplifier also{zp 100}. I use a sonos system for whole house audio. Put the zp100's { i have 3} under the house. I run in ceiling speakers to the units under the house. Wireless and convenient.
Now, i will have a mini for the main rig for hi fi reasons.
Also, the sonos can't play songs you downloaded from itunes. But, i will hook my airport express to a sonos to play those songs.
Thanks for the responses.

Has anyone thought about the new Apple Time Capsule as an alternative NAS device?. Looks like you could set up a second wireless network with one of these and use Apple TV for very little coin (about $730 for a terabyte of memory with an 811.n network plus an Apple TV)

Plus, it looks like Apple has upgraded the Tv and dropped its price.

Too many choices!

Thanks!