Will my music sound better streamed off my Apple TV via WI FI to my amp and speakers, OR if it came direct off the Apple tv hard drive to AMP and speakers?
I don't think you can go from ATV to AE - the ATV is not a server, only a client.
But you could plug the ATV into a DAC (via optical cable) and then the DAC into your amp for stunning results - something like the Beresford, CA DacMagic or Musical Fidelity V-DAC.
My apple TV goes into my Onkyo Amp then to my speakers. You reckon that if I put a DAC between the Amp and the Apple TV it will increase the music quality?