Good question. I hope a lot of people post their opinions. I am using an external amp in a fairly standard system component wise, just for reference.
The digital input concern you mention is a valid thought. I have devices with only coax digital outputs and therefore have to run one of them with analog only. There are converters (cyclops, audio authority, etc) that can convert a coax to optical signal, but I have never researched this further and don't know if it is a good method or not. I suspect it is fine, but cannot say for sure. Approximate price seemed to be around $30-$80 or so each. There are also selector/converter boxes out there that will allow 4 optical and 4 coax to autoselect, so it becomes almost unlimited at that point, conversion wise. I think they start around $130. For me, I have been OK using analog outs for my digital cable, as I don't subscribe to any channels which output multi-channel digital anyway. I agree with Gonk, there are good alternatives when choosing equipment most of the time.
I personally would have preferred something more robust as far as triggering goes. The trigger included is not compatible with my Monster power conditioner, so instead of triggering my amp through the 1050, I trigger off of my cable box, meaning my cable box is on even when I'm listening to CD's. I know I could make a triggering circuit to up the voltage, but have been too lazy to do so.
I would say, especially considering the recent price reduction, I would consider the 1050 well worth the money for anybody except the ultra-high end consumer. Anybody who works for a living can really appreciate the 1050 in almost all respects.
S.