In my opinion it is necessary that Winamp still play/rip Audio CDs. It is must have (however, it seems that soon no one will have DVD drive - at least I don't have, just using external Samsung drive).
Using Windows DAE is a very good idea.
About burning support. For me this is unnecessary feature (to be honest, every CD I burned was just for testing in Winamp translation
). So, it is not a big problem for me. Just remove it!
The most important extra feature of the program for me was auto-taging feature and cover art auto download feature... That was great!
If you implement it and it will work as good as it was in old AOL builds I will be more than happy
-Pawel