I played around with the Raspberry Pi this summer also. I have a huge library and found that with the limited memory capabilities, and the combined lan-usb controller it just could not do what I wanted. Since then, I have gone to a Intell NUC running JRiver. This combo really got me going towards pure digital. So much that I built a file server (M-ATX-AMD) with 12TB of disc space running Freenas and ripped all my DVDs and BluRays as well.
The Pi is a brilliant device, and a cheap way to get something done (but only one thing at a time). And I learned a lot trying to get it to work. I knew nothing about Lunix, so the learning curve was steep for me (but I was a MS-DOS wizard back in the day). But in the end, I learned that managing a large file structure and decoding Flacs was more the the Pi could handle.
I have tons of RPi's. Use one for a Wifi hotpot on travel, one for a shairport server, one for a LogitechMediaServer and Squeezelite player, another in my suitcase with my mobile printer as a CUPS print server and LMS Squeezelite and web server. When I go on travel I repeat the wifi on my own router and then set up a printer and web server. My coworker can print and view files / photos on my server.
I also run OwnCloud 7 on a Pi here at home with a 1TB drive attached. All the files I need on the road go on the Owncloud Pi. Keeps things minimal on the road.
Another pi does a digital sign at my gf's business. And I have several pi's laying around doing nothing, just gave one away to some kid.
I can use the heck out of a Pi but I'm with you in that I wouldn't want to rip FLAC's with it.
My favorite set up is upstairs on my Bottlehead Paramour / Foreplay / SEXy Speaker set up. I have an R Pi B+ set up with 2 DAC's. One DAC is ODAC with LogitechMediaServer and the other DAC is HiFIMeDIY which is hooked to shairport. I can get iTunes, Spotify, Pandora, etc, etc, etc on one R Pi and it sounds very nice as well.