Bloody hell, turns out I wasted all morning on faac not working simply because it was Linux (well some outdated debian package to be exact). It worked fine on Windows and compiling faac on Linux myself did the trick. Also, mkfifo and piping mplayer to faac worked too once I removed white spaces, but until AAC file is fully written QuickTime cannot play it. So before I could stream AAC audio I need to either pipe to mp4creator or figure something else. (AAC streaming doesn't work in QTSS in the first place).
TODO
1. Pipe faac to mp4creator and try resulting mp4 file thru QTSS