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
Another option for Apple TV display is to use a small LCD monitor w/ DVI/HDCP monitor. Then take a HDMI->DVI output.

If video feature is needed sometimes, get a HDMI/DVI splitter. One goes to TV and one goes the monitor.

Sonos has a product but the price tag is just a bit too high. If it's 50% less, I would bought it long ago. Most of the media streamer now runs at $200-$400 price tag and all have HD video at the same time.
I tried a Mac mini, and I'm thinking of playing with Apple TV as well, but I went with Sonos because, among other things, I don't have a TV available in every location I have a Sonos system and, where I do, it seems silly to run a 50" and 61" Plasma TV to play music (expecially since the TV is a significant source of electrical noise, and uses a lot of energy).

The Sonos hand-held and computer interfaces are just too convenient, and I haven't seen a better alternative.

I can even lay in my hammock and control the Sonos system in my back yard.
i can do the same thing with my ipod touch. i can be anywhere in my house and control my mac with itunes. plus, i can surf the web, answer emails, play games, etc... on the ipod touch.
Thanks to all who replied. I ended up going the Apple TV route and couldn't be happier. I am now looking for an appropriate DAC.

Question to Rbstehno: Can you elaborate a little on how to use and Ipod Touch as a control device? Sounds like the ideal solution for my second system.

Thanks
get remote buddy for the touch from a company iospirit. it allows you to take control over the mac with itunes on it and you can use cover flow and turn on which speakers you want to listen to.