I agree and had already thought of that but, I can't find a way of making it update with the stream info. Not sure it's at all possible.
If anyone out there thinks they know how, let me know
I know you're using the mpga audio codec, but does your media streaming engine allow you the facility of perhaps display a "cd cover" + audio file that way you could display the image inside the media player.
You could use x-ms-asf as a container to then stream video/audio if the bandwidth is not much greater it might be a feasible option.
There's some old code here that maybe of use:
http://amigarealm.whdownload.com/various/webcam.htm/me listens to The ModStation.