I was hoping otherwise, but I think you're right about this trend gonk. Although the 1070 is well suited for supporting future audio streams decoded externally such as TrueHD or DTS HD MA with its analog bass management capability and excellent signal path through the 7.1 connections, I don't see many of these type of HD DVD/Blu-ray players coming on the scene. In fact the trend in the under $600 players seem to be to provide limited decoding for analog outputs. Even if such players existed for an 'affordable' price it's debatable if the analog path would ever sound as good as the HDMI path...in fact there are a few threads on other forums on this very topic today with the concensus being the HDMI path sounds better. Certainly on my 1070 DD and DTS decoding in the receiver is superior to decoding on my DVD player, although the reverse is true for CDs.
I wouldn't entirely rule out the possibility of some fairly respectable-sounding HD players appearing
eventually that could offer fairly complete internal decoding and decent 7.1 analog output. Unfortunately, I do agree with you that the current "tone" of the format war will make this unlikely in the near term - it's going to be left to companies like Denon/Marantz, LG, OPPO, and others on the periphery of the war who may be willing to try building a player (ideally a combo player that would support both formats) with some concern given to consumers who aren't willing to embrace HDMI. I guess I share your lack of overwhelming optimism...
As for the HDMI path sounding better, there are a number of variables to contend with there. The obvious first issue is DAC's and the overall analog signal path, an aspect where surround receivers and processors are more likely to excel than source players born amid a cost-sensitive format war. This is one that
can be done very well in the player, if care is taken and a bit of money spent on that aspect of the player. The other issue is decoding and DSP, an aspect where the receiver will likely always dominate. The decoding itself isn't necessarily a big deal - especially with Blu-ray's multichannel PCM tracks that require no decoding at all and the TrueHD tracks that are relatively straightforward - but the associated DSP can make a big difference for things like bass management, time delay, and so forth.
would it make sense to use the 1070 purely as an amp?
It can be done - but there are some quirks associated with such an arrangement. I generally only recommend using a receiver as a power amp as a temporary measure. You would want to set the bass management switch to bypass, you'd have to set the 1070 to a fixed volume position and leave it there, and if you were using an Outlaw processor you'd have to work out how to turn it on and off without allowing it to pick up changes in input setting or volume setting sent to the processor. You'd be better off selling the 1070 to help pay for a 7075, as it would simplify setup and operation of the system - and I believe that it'd give you a larger power supply to boot.
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