I'll take the liberty of answering that, though it's not my project; slap me if I offend.

Yes, it will stay a remote control; that's all mpd supports. However, if it can turn outputs on and off (I haven't seen that it can, but haven't really looked either), you could set up icecast as an output. I suppose you can do that even without that support, but I'm assuming you don't want to simultaneously stream and crank it out the sound card...