I don't see the problem...

Embedded XP has matured to a secure and solid OS... Don't see what's wrong with it...

(please don't get me started on OS-X or Linux)

The main task of the OS will be to serve music and pictures.. so Embedded XP is more than capable to do just that. 

If this is true its absolutely great! This means very good opportunities to "hack" the unit and make it even better.

Think about the AppleTV. This is actually what makes this a nice unit.

I buy most music online in the iTunes Store ... so now I will either have two computers sitting at home for music or I will have to convert the entire library to move it to an additional XP system.

This system to me is a gimmick, probably one that will regularly break down due to an underlying OS that B&O has no control about. I simply do not want gadgets at home with embedded OSs that the vendor can only license and is stuck with (as will the consumers in the end).

And sorry - but B&O is most successful with 40+ aged target group that cannot or want not operate their music through a PC. I think with horror should my parents at 60 be talked into this product by their local dealer (which he will surely try :-) ) and I will be called continuously to help. If this product is to be marketed to a younger crowd, well, OK ... but wait a second at € 5000 ?????

Mind you - how much is a state-of-the-art iMac with iTunes? No, that surey cannot be compared since it features a slot-in DVD player and a bigger screen and free remote and a full keyboard for the internet and BlueTooth and WiFi ... and ... and ...

OK - I cannot hide my disappointment here: where's the analogue + digital + wireless Masterlink in a box that'll play at least DVD + BlueRay, I had hoped for? (and where's the unique selling proposition either) What about this crippled PC took them 10 years to develop?

For all the music you have in iTunes that you have ripped yourself or that is iTunes+ (wihtout DRM), then the Beosound can play it just fine.