I'll let the experts respond, but I will say this - the no audio bug in the 1070 would never sway me to a competing Denon model. I've listened to both, and in my highly complex and audiophile-ish vocabulary, my belief is the Outlaw 1070 owns the competition in this price range.

If HDMI switching is really important to you, you may want to wait for the new model, but I think it will be 2008 like you suggested before that becomes a reality. You and I have about the same ratio of music/HT and I really do love how this receiver excels at both.

my two cents...good luck w/ your decision.