Contemplating replacing my SqueezeCenter/Squeezebox 3 x3/sometimes iPeng setup with an Airport Express x3/iTunes/Airfoil/Remote-iPhone app deal. Tired of scanning my library for new music and would be a plus to capture other audio streams (with Airfoil). The Squeezebox internet radio steaming is nice though. And the Remote app is just smoother than using iPeng (at least at this point and likely near future at least with laptops ... hunting for IPs...). On a MacBook and will likely stay on OS X as primary operating system so no problems using iTunes.

Anyone else do this "downgrade"? Any comments?

I use an airport express with airtunes. I haven't bothered with airfoil, tho.

Apparently you can broadcast your iTunes via NiceCast and tune into that as a radio stream with a Squeezebox. This would preserve the iTunes/Remote interface while still giving you the external display of the Squeezebox and letting you use a Squeezebox.

I can't try this out because I don't have the hardware, but I am very, very interested in this and would love for someone to try it out and report back. If this solution works, hello Modwright Transporter

I actually made this "downgrade" but I don't use internet radio all that often so it's not really an issue for me.

Other than that, using iTunes through Airport Express via optical to a DAC has been working out just fine. I use the iPod Touch as the remote and all is well. Although, lately the Airtunes has been cutting out every now and then, so that's annoying. I haven't looked into it yet to see if others are experiencing this and if there's a fix. When iTunes 8.0 came out it caused problems connecting to Airport Express airtunes speakers. So it probably has something to do with that.