John,
I can't give you any real listening feedback on the AVR250, but I used to utilize (and still own) an Arcam AV50. Suprisingly, the entry level ($1,000 new 6 yrs. ago) AV50 has pre-amp outs. Before I purchased the 1070 I looked at the AVR250, as I had excellent results with the AV50. The fact that the Arcam did not have pre-amp outs was a deal breaker.

I was going to spring for a 990/Some Amp Combo, but had to hold off for additional funds. Then Outlaw came out with the 1070. The sound is as good as I had hoped and I don't have to buy additional amps right now. I use Def Tech 7002's for my front mains with a CLR 2500 (center) and BP2X's for the rears. The sound is as loud as one can stand and detailed and open as any mid-fi system I've ever heard.

If you can afford the 990/7125 combo, I'd go that route. Actually if I had my choice, I'd go the 990/2200 mono block route. However, if you want great sound now at a lower cost, you can't beat the 1070.