What about a tablet? I have a Microsoft Surface that I use for streaming music from Microsoft Groove. Pandora would likely work about as well but I'm in Canada where the service isn't available so I can't test it. Not sure the sound quality would be as good as the Squeezebox but there are various types of tablets, some advertised to have 'premium' sound, available in the range of $100 and up that would probably do the job. I just looked and there is a Pandora player for Android as well as one for a Windows tablet.

Did you have the Squeezebox set up to play the music externally on your audio system? Most tablets would likely have a headphone output that would likely work for that.