Agreed, there are cheaper options. Alpine do some touchscreens too, but are pricey. FLAC can help, then you're into storage, cooling and fan noise to deal with. Something I couldn't be doing with!
I don't see storage as a big issue really, all depends on what you are going to put in there. You can easily get a couple of TB worth of hard drive space for not too much money nowadays, that should hold a loads of music even if it isn't compressed.
Separate the hard drives from the rest of the system and one of the major causes of heat is gone, and buy a couple of slimline DVD players so you can slot in CD's or DVD's as and when required and it all sounds good.
I'm actually quite getting into the idea of this now