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@aggi
A Chromecast I guess matches part of that. Has a digital out which plugs directly into your amp, nice easy interface and blends your personal library with the Google Play one. As you say though, it downgrades FLAC to 320kbps MP3 and can only cope with 20k tracks.
I have a feeling there is some kind of Raspberry Pi project already out there which aimed for something similar but can't remember what it's called or how far it's got.