Hi Mark, If I understand this, you have already lost detail with the ripping to AAC, so you will need to re-rip to ALAC, converting will not restore lost information.
Have you investigated something like the popcorn hour line to replace the Apple TV, not as nice of an interface, perhaps, but features and can access net music, video. The popcorn hours can accept a NAS drive which would make PS3 I believe have access to music files from it. Sorry if this has more wrenches then help, but mainly wanted to address the re-rip issue, the rest are just options you may consider. Sounds like a fun project.
