Currently it doesn't stream MP3 via http (like Shoutcast or Icecast). But this is a hot topic on the list, and they are asking a bunch of questions about how people would like to see it implemented. Earlier press releases about the unit said it would handle "internet radio", so many people are expecting it.
As for delays in skipping to the next song, there really hasn't been much talk on the list. I think most people (like me) just queue up a genre or playlist and let it rip. Once in the while I'll skip a song, but not enough to really get annoyed.
Personally, I think it's biggest current flaw is not being able to change the display contrast. Think nuclear. But several people are on them about that, so I think that will come also.
-James