I acquired a Squeezebox this month, which is a new Digital Media Adapter which allows a user to access digital music services without going through a PC client, as the older Rhapsody-Ready devices required. The end result is that you get a pretty cool Music Unlimited experience without too much hassle, and without setting up a PC next to the stereo, which rarely passes the wife/partner test.
Logitech recently acquired Slim Devices, which produced the Squeezebox - this was a great purchase for Logitech, and I was surprised that one of the larger networking providers like Linksys didn't step up first for this team. The resulting product reflects both the amazing technical chops of the dev team, as well as some of the continuing consumer flaws in the product and service of a smaller technical company. It's a $299 small/attractive device which has Ethernet, Digital and Wi-Fi connections, as well as the usual audio plugs.
The absolute key feature here is that you can access Rhapsody and other music services like Pandora, Live 365, etc, without having the PC turned on anywhere in the house - it's a key move in the inevitable trend towards reducing the role of an actual PC download client in the music consumption process. You need to set up an account at Squeezebox, which is irritating, but after that, it's really straight forward to set up and deploy music accounts. There is no longer any connection to the PC, which solves a lot of the big issues involving the PC being turned off somewhere in the house when you want to listen to Rhapsody - in fact, you could just bring the device to any wi-fi connected area, and then access all of your music, which is pretty cool.
The other great feature is that Squeeze has integrated with a whole new set of Rhapsody API's, which go beyond typical MyLibrary functionality to allow user access to new editorial areas such as Search, Recently Added, Staff Picks, etc. It's gone far beyond the usual playlist functionality to start to give much more access to the set top box vs just a small subset of the PC content.
On the other hand, this great new functionality is still stuck within a small LCD screen on top of the TV which most people can't see from more than a few feet away. Unlike the much more expensive Sonos system, you still have to move forward to find and play your music, although Squeezebox still does a decent job of providing a basic interface. The other big issue is a more systematic one - the Rhapsody system just cuts out too much once you average it over many hours - it's not a big issue for a couple of hours but when you really want the system to simply "always be on", it doesn't seem to work that way, although I may just have a lousy data ISP.
In general, the Squeezebox is a great mix of price, power, and functionality. It's a full generation above the previous dumber, less functional, and harder to use boxes, and the non-PC functionality part is a HUGE step forward. But at the end of the day, I'd recommend holding off another year before the Sonos or other more expressive functionality comes down to a lower price point since the current Squeezebox functionality is still a little too limited for a mainstream crowd.