Well, spotify is a streaming service too, so if you don't have local files, then i guess i would go with spotify, although if you don't have premium the sound quality isn't that great. Also, spotify can't play flac. If you aren't streaming, then i would definitely recommend foobar over spotify.
I have not tried Foobar, however I have used Spotify.
I owned a subscription to the Spotify Premium, and I was not disappointed. However I recently cancelled my subscription to Spotify and purchased a premium subscription to MOG, a similar music streaming service. Everything is streamed and downloaded in 328 kb/s. Although Spotify claims the same, some believe parts of their library streams at 128 or 160 kb/s. Most people that compare the two on this site generally choose MOG, based on audio quality alone. The user interface is poor compared to Spotify, but it is worth it in my opinion.
By the way, here are two interesting links about Spotify streaming quality:
What's the streaming quality:
http://support.spotify.com/us/learn-more/faq/#!/article/What-bitrate-does-Spotify-use-for-streaming
How to see the actual value:
http://community.spotify.com/t5/Newcomers-and-Contribution/Guide-How-to-see-a-bitrate-in-Spotify/m-p/115430
And according to this article, Spotify has 99% of their catalog at 320 kbps:
http://www.forbes.com/sites/frederickallen/2011/12/27/like-spotify-mog-blows-it-away/
I use Spotify premium at 320 kpbs and the quality is good.
The best reason for utilizing Spotify or any other streaming service though is music discovery.
When you can type in almost any band name and listen to something, you will find yourself trying a much wider variety of music.
For example, it's easy to follow the "what are you listening to right now" thread and sample what other people are recommending. 80% of the time you may hate it, but 20% of time you'll find a gem.
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