Edit: Actually, this is pretty cool. You could have a master copy of your music in lossless and make the FUSE’d directory available across the network for the players that don’t support lossless. I wonder what the overhead would be on that.
For example, if I want to stream my collection to my xbox I don’t need to have two copies of every song, one in flac and one in mp3, which would take up even more hard drive space.
If I wanted to I could create another FUSE mount with a lower quality mp3 for streaming music.