[SOLVED] No Access Point

[Tim Curtis]

I think the most common connection is either Ethernet or WiFi to home Router. AP mode is really meant for initial setup to configure WiFi when you don't want to or are unable to connect an Ethernet cable. I don't know which is more popular, USB storage or NAS for music collection.

Correct, AP mode can only play files stored locally on the Pi. It does not provide connection ti the Internet.
Correct, storing the plaintext password as a PSK is to improve security.