I felt that way when the 1007 was initially offered as a replacement. I went back and forth with Onkyo and I tried to get the 3007, but they would not budge. Onkyo insisted that the 1007 is the equivalent model in the new product lineup. I even offered to pay the difference to upgrade, but it was a no-go.
After further consideration, I realized that the only features I might miss were the Reon chip and the built-in HD radio tuner. The 1007 requires a plug-in module for HD radio reception. In reality, I have a Pioneer plasma screen, a Samsung Blu-Ray and a Toshiba HD-DVD player, and they all upscale acceptably, so losing the Reon didn't mean much. I never had much luck with HD radio reception, and there isn't much left on terrestrial radio that I want to listen to anyway. I also lose an insignificant 5 watts per channel (135 vs. 140), but now I have 9 channels at 135 watts each as opposed to 7 at 140 watts.
The 6 HDMI inputs on the 1007 are a nice feature, as is the network functionality with Internet radio tuning built in. Also, the 1007 updates its own firmware over Ethernet, so no more fooling with serial ports. I have already gone through two painless firmware updates.
Sound-wise, the 1007 and the 876 seem very similar. The 1007 has a nicer looking on-screen menu with some new user options, and price-wise, the 876 and 1007 list and sell at the same price points. All in all, I gave up a few features that I was not using, I gained two additional amplified channels and a slew of network functionality that I find myself using constantly (the 1007 also streams files from two servers on my home network). I am happy with the 1007, but I also loved the 876 while it worked.