Actually, the latest version of iTunes does allow you to have your iTunes Music folder on a remote disc, such as your music share on the server. I’ve configured this myself to clear all that content off my regular computer.
Actually, iTunes has been able to use a network drive for quite some time.
You just enter //servername/sharename into the library location.
iTunes happliy resets the library location to the default location when ever it feels like it. This behaviour becomes extremely annoying by about the third time you have to re-enter your music library location