The 2807 is probably the obvious parallel to the 1070 as far as budget goes. Denon traditionally gets the latest features into their product lines (particularly the big-buck models) ahead of almost anybody else. As RedSIinPA points out, though, Outlaw can probably claim an upper hand in sound quality. In addition to the sound quality differences (which 1070 owners' feedback tends to indicate favors the 1070), there's also the support side of the equation. I couldn't find the warranty on the Denon, but the 1070 has a two-year warranty that is transferrable - and you don't have to worry whether or not you are buying from an authorized dealer (which will determine whether or not Denon honors their warranty). There's also Outlaw's customer service team (a phone call or e-mail away) and of course the crowd around here.
The DVI/HDMI video switching in Outlaw's products is transparent, so there's no downside to routing the cable and DVD signals through the 1070. The video switching won't offer any performance benefit, but the bright side is ease of use: leave the plasma on that one HDMI input all the time and the 1070's input controls will take care of the video switching without any thought or effort from you.
From all we've seen so far, the current beta firmware for the 1070 and 970 (which you'd need to install yourself, since they're not going to ship new product with a beta installed) seems to have done a whole lot to improve matters with the "no audio" bug - no official declaration of "success!" yet, but indications are positive.