I wandered into Dixons today and saw this: http://www.dixons.co.uk/product.php?sku=490188
It's a mini hi-fi system with DAB radio, DVD player, and 40Gb worth of CD recorder. I daresay it's not gapless, it only supports MP3 and WMA (no lossless encodings), there's no phonos in or out
, and I don't fancy trying to access a 40Gb collection using a 2x16 character VFD (there's no TV UI), but for UKP450 you can't really complain too much.
When reading up on it I also found the Cambridge Audio Azur 640H
which does sound rather more like it (lossless, internet radio, streaming client, TV UI, CDRW, SPDIF out) but costs UKP500 as a line-level component. Judging from the back panel, it's based on a mini-ITX PC. Would be nice to know whether it runs Linux...
More and more companies seem to be finally realising there's a market for this stuff...