Chump,
Just a couple of comments. I think your view is a little simplified. The Onkyo doesn't have THAT many more "features" but has what is becoming an industry standard at this price point. When the 1050 first came out, it's value was much greater than today because it had "features" that no other receiver in its price range had along with stellar build quality. Since then, the big boys have been scrambling to catch up and in many ways have surpassed the Outlaw.
I believe that some of the price savings can be attributed to parts (since I believe the amplifier section is a little nicer in the Outlaw), but Outlaw also is cutting corners with "generic parts". Look at the 6.1 decoding. I think that there can also be some savings in higher volumes (since parts can be purchased at a reduced rate) and improved manufacturing technics. There is a reason why Outlaw was able to reduce the price of the 1050 from $599 to $499 and it is not from cutting corners. The same goes for other companies as well.