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Member since:
2007-04-18
$600 seems a little excessive, An Eee Box 202 from Amazon will cost $223 including delivery [1]. This has SPDIF and 160GB Hard Drive so is an almost exact match for the Apple TV on those specs and is about the same in price. I am sure similar specced machines can be picked up cheaper.
For the headless shutdown on the linux box, why not install a SSH client on your remote device. With public-key authentication and some automation you could create a one tap shutdown procedure. (there is an app on the Android market called Lazy Geek which should be able to do this[2] if you were using a budget android device this would cut the total cost by a fair whack, though I imagine there are similar apps available for most smartphone platforms)
The usability/setup problems you had are perhaps the biggest point against MPD. I don't know how common your use case is, but maybe there might be a demand for an appliance type linux distro that includes everything you need with sane default configurations that anyone could install
[1] http://www.amazon.com/Intel-Processor-Drive-Linux-White/dp/B001HPPA...
[2] http://lazygeek.e-legion.com/en/index.html