AppleTV as my main digital source. Opinions?

Now that my NAD CD player is one its last legs (thru a decent but cheap DAC) I think its time to move on from CDs and take the plunge into a digital music server. Have an old iMac and wireless network - sounds like AppleTV is an inexpensive and user friendly solution. Found a 320 GB drive at Fryes yesterday for only $99! and have already started loading my CDs onto it. If figure this thing could hold 1000 CDs(!) using apple lossless encoding (non-lossy) - and a lot more if I compress the less important stuff (the wife's pop albums...) at AAC 224 or 320kps.

I played with the AppleTV interface at my local apple store and found it easy and fun to use and nice eye candy - looking forward to not having to get up and look for CDs and mess with those jewel boxes. I have this condition that makes it difficult to remember to put things away when done using them. ("laziness"?).

Sounds like a great solution for 300-400 bucks. They just came out with a 160 GB model for 400 - I figure I'll load all the CDs onto the drive before purchasing the unit. Going from its optical output to my DAC I think this will be a true audiophile/cheapskate/lazyman's dream come true. But I welcome your opinions.