I have the 1050 and a standard-def TV w/component video input. I run my Pioneer 563a component video direct to the tv as the 1050 only allows for S-video and composite connections.

My Laserdisc player and VCR run through the 1050 as a switcher, but since I rarely watch anything with these formats it is a non-issue, and I never noticed any loss of quality.

The 1070 is supposed to be able to pass hi-def video signals w/out degradation, so If I had more sources than available inputs on my monitor, I would be ok with going through the 1070 as a switcher.