Yes, have just read through the mammoth FAQ blog, and it does specifically confirm the PS4 can't play CDs or MP3s. No mention of any other music format is made though (ALAC, FLAC, AAC etc. etc.), so we need to wait and see what this means. They're heavily pushing their "Music Unlimited" service, which you can use to stream music during gaming - not too surprising but if this is the only option, I can expect quite a lot of backlash over this.
So many things are still quite unclear and a lot of assumptions are being made by the media outlets e.g. many are reporting that USB storage cannot be used at all, but this isn't the case i.e. the FAQ specifically states that USB storage cannot be used to expand the PS4's storage i.e. be used to store installed games etc. It can however be used to install system updates (this is covered later on in the FAQ), so clearly it does support USB storage in some capacity, so we need some more clarity on exactly what USB storage can and cannot be used for. (NB - worth noting that, like the PS3, you can replace the internal hard disk for a larger one yourself, meaning it will be easy to whack in a 1 TB drive to give you a lot more storage for installing games - as per the Xbox 360, Microsoft will not let you do this).
I think the same is therefore true on playback of local music and videos. As I've said elsewhere, the one advantage we of the UK have with the release date being 2 weeks after the US date is, we'll get all the answers from people who actually have the device in their hands prior to making the decision to purchase or not.