Re: Oh so true...
I'm sure you're not being exploited when using iTunes (it's on another level and it's in the T.O.S. so it's good). Yes portforwarding requires a tiny bit of IT knowledge which I hope you have, visiting this site ;)
I also run my server https-only with blanket .htaccess, and all portal services (like the streaming) that might be vulnerable to the bash bug and future mishaps are on unique paths that a brute-force scanner won't see. As Bruce Schneier recently said, being 100% safe from hacking is an illusion, so this is my best effort. And I have offline backups.
Contrary, however, good luck if your iTunes account gets hacked and wiped, as some journalist discovered a while ago - it wipes across devices so bye bye local copies.
I also don't care about playlists because either I listen to albums, or it's just a track of some one-hit-wonder, which gets dropped in my 'various' folder and gets random treatment. Or selected on genre.
Oh, and since I listen to albums, I like to have all tracks so CD makes sense for me. I can still buy individual tracks from google play and download the mp3 (those one-hit-wonders aren't worth the FLAC)