I opened up a ticket with D-LINK and here was their response:
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You are correct. The DNS-323 support up to iTunes 9. Apple as changed the implementation of the itunes server in 10 so that the DNS-323 would require and update to the current itunes server. I have no update at this time regarding plans to update the DNS-323 iTunes to support further versions of iTunes.
Should you require further assistance with your D-Link products, please reply to this message, or call toll free at 877-453-5465.
Thank you for networking with D-Link.
Sincerely,
Eric F
D-Link Technical Support
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So to me it looks like they recognize this as a D-LINK issue. However, they may or may not decide to fix it. Maybe if their is enough requests they will.