I just replaced my Onkyo TX-SR706 with the Sony STR-DN1040 a couple of days ago. The Onkyo was showing signs of the dreaded HDMI board death. The only thing that I miss of the Onkyo thus far is the volume/mute overlay on the TV screen when watching video but I got that at the sacrifice of occasional blue sparkle artifacts in dark scenes. Other than that the HDMI switching is faster and it's faster to resume audio after fast forwarding video (had to pause the Onkyo after FFW to "catch up" on audio). I'm not an audiophile but it sounds just as good as the Onkyo did, I'm not going to say better because I can't say that honestly. I have a 7.1 setup with Mirage Omnisats and sub. I don't have any iOS devices anymore but Airplay from iTunes on my Mac works flawlessly up to this point. The DN840 can be had for ~$150 less and is essentially the same minus a couple of HDMI ports and the 1040 interface.
Anyway, so far it's a great choice for me.