I have a good friend who uses a Yamaha receiver just like yours and he enjoys it. I tend to think my 1050 sounds a bit more on the "warmer" side, but we still haven't done a head to head comparison. It would, however, give you better sound quality, a little more power, more inputs, the 6th channel decoding, and preamp outputs. Those things are nice to have especially if you're in the upgrade mood. Honestly, I love my 1050, but I don't think it would upgrade your system as much as you may like.

What is your budget? If you have the money to do it, the 950/7-series combo may work better for you. That to me would be a good case for an upgrade. It would give you more power, more options, and just more overall flexibility. It sounds like from the size of your TV that you have a larger room. The extra power of that combo may work perfectly for that. Of course, you do need that money stuff to do it.

So to conclude this rambling post, the 1050 is a nicer receiver, IMHO, than the Yamaha. In your case, however, another option may work better. Good luck!