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Another device you could use for streaming and playing local media files is the WD TV Live, made by Western Digital. It includes YouTube and other streaming sources, but also has the capability to use a USB stick or USB hard drive and play media files (pictures, audio, and movies) directly from it. Or, you can point it to another PC/server on your network to play files from that. And it has composite and HDMI outputs.
I have one of these and it is very useful. Mine is actually a model that has a built-in hard drive, but that one is, sadly, discontinued.
I also have Roku players, which are also very nice, but more tailored for streaming services. They do support playing local files from a USB device, but aren't as versatile in that regard as the WD TV Live.
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