The Mac / Mini can handle Flac as well, just not via itunes
They are expensive for just a music server but if you are to include video and pictures then you could probably start to justify the price...maybe!
I've had mixed results with mine though with regard to music quality played directly from either USB or TOSLINK, the presentation has a steely, over bright hard edge to it. Traced it to the inbuilt WiFi. Going to a wired Ethernet connection made quite a difference but I need a wireless connection so ended up disabling one of the inbuilt antennae...better but no cigar.
Its now replaced my old XP machine in the office...
Listening in a Foo free Zone...
Only a Sith deals in absolutes.