As long as you are happy with iTunes and the 16/44 is really the only "limitation", (though not for me), Apple TV is an excellent device to connect to your stereo. However, remember you also need to connect either an HD TV so you can view what songs to play or use the free Remote app with an iPhone, iPod Touch or iPad to control playback.
Use a good DAC, (my budget allowed for a Cambridge DacMagic which mates very well, especially as it has a digital pass thru unlike any other DAC I found, so you can still get the 5.1 sound decoded if you wished), and a half-decent cable and you're set.
Use a good DAC, (my budget allowed for a Cambridge DacMagic which mates very well, especially as it has a digital pass thru unlike any other DAC I found, so you can still get the 5.1 sound decoded if you wished), and a half-decent cable and you're set.