I see a "Tiny" problem source here.

A wireless Touch as a server, streaming to other wireless squeezeboxes.

This is the famous "not recommended double wireless hops" rigth in the
box.
It is also the best case scenario.

Imagine a couple with two Touches, then we have an easy way to have
"his" and "hers" own library on a different Touch ? thus making it easy
to maintain two servers with different favorites playlists, everything.
Imagine cross streaming flac files between these touches for playback
;)
Add some extra receivers around the house of course wireless .
Then we have endless permutations of the multiple streams trough one AP
problem.

I Agree that it will work fine in some cases especially for lossy
content mp3 and AAC. And the scenario I outlined above is actually a
good idea with a mostly wired network when all the Touches with a n USB
disc is wired to the switch/router/whatever you have for a network.

I see a possible support and pr nightmare, people will build all kinds
of "impossible" systems and expect them to work (new shiny digital must
work even if I'm a moron) and as a consequence, whimper and whine on the
forums.

Suggestion: to avoid "support hell" lock the "TinySC" server to the
Ethernet port.


-- 
Mnyb

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