Just because an AV receiver has 7.1 it doesn't mean you have to use it as 7.1 It's one of those features that has been deemed to be "necessary" from a marketing point of view, but in most homes 7.1 is overkill.
Power: I'd take most AV Receiver power claims with a large pinch of salt. Few amps can actually meet their power claims with a real world load. Anyway, there's this thing called the volume control, if you know what I mean ;).
Buying a proper AV receiver of the quality of the Denon means getting something home where the emphasis is on quality, flexibility and performance. That's never a bad thing in my book.
The Pioneer is an interesting attempt by the brand to reclaim some of the territory lost to Onkyo and Yamaha, and it's certainly nice to see a slimline receiver which is sure to keep wives and significant others relatively happy. However, Onkyo offers the same features at almost half the price in their HTS3405. Is the slimness of the Pioneer really worth an extra £200?
If it was my money I'd steer well clear of the typical DVD/Blu-ray all-in-one cinema kits. They're for people who just want bells & whistles rather than performance. Even then, the added extras such as streaming YouTube etc often leave a lot to be desired. They're just too clunky in operation to be regarded as anything more than a gimmick.
There are plenty of "Spec me" threads, and the recommendation list usually ends up looking like this:
Best value/lowest cost 5.1 audio systems with HD audio decoding
- Onkyo HTS3405 av receiver & speaker package kit - £249 - Perfect if you want a one-stop solution and you aren't likely to upgrade
- Sony STRDH520 av receiver & Yamaha NSP285 speaker kit - £149 + £100 = £249 - Great entry-level system and a perfect starting point for the budding AV enthusiast
Step-up AV Receivers - 1080p scaling
or network features
- Sony STRDH820 Scaling AV receiver - £249 - features video upscaling to 1080p and improved audio circuitry
- Onkyo TXNR509 Network AV Receiver - £289 - features ethernet port and DLNA compatibility - play music files from your Home PC/NAS drive and also stream music from internet radio and online music services such as Napster
Step-up AV speaker packages - better audio performance - sweeter treble, deeper and more solid bass
- Yamaha NSP40 - £120 - bigger and beefier version of the NSP285
- Boston Soundware XS/Harman Kardon HKTS9/Tannoy SFK5.1 - all pitched at £199 in the discounters. Choose whether you want small form factor or more conventional looks
- Kef KHT1005.2 "Eggs" - £229 - beefier sub and higher performance satellites
Step-up AV Receivers - 1080p scaling
and network features
- Pioneer VSX921 Scaling Network AV receiver - £399
- Onkyo TXNR609 Scaling Network AV Receiver - £449