I recently installed "AirAudio" on my android and really enjoy streaming audio via AirPlay to the raspberry pi.
Some streaming formats (DLNA/UPNP) let you chose a audio encoding. eg PCM / WAV which might be possibly handled by an esp8266.
having the esp8266 receive and output audio would be really great! possibly an external DAC is required, but this only adds cents to the wireless audio incarnation.
Do you know of any DLNA/UPNP implementation that might fit into the esp8266 RAM?
Do you think it's possible to output a continous datastream to the DAC? I'm not aware of any DMA on the esp8266 so every wifi receive event might interrupt the output of DAC samples.