I don't like klipsch for anything lol, but that is just me {the heritage line is nice but ugly}....
Not to get into a big debate about an avr vs "separates" but in my personal experience avr's for music only are a pain to use, no onscreen displlay too many buttons all over the place too big, just a big messy waste of time... IMO
You will not need fmods if you get the sb1000 it will handle crossing your mains by itself..
So you would simply plug the apple into the d1 dac, then the dac into the sub and then the sub into your mains amp, use the d1's volume control and be done with it, simple...
As far as room correction and bass management, I will take that simple direct system {d1 dac with a dayton amp would be less than $300} against that avr any day of the week... you can upgrade it, its simple to use, small, and will sound better.
Now maybe that is stroking my ego, but IMO that is better than others stroking you......
We have had this conversation a bunch of times, separates vs an avr, but usually its for the ht side, with music only, I like a MUSIC ONLY system, since when you put your avr in pure direct mode, you will bypass most of the things that make that avr sound good for HT anyway.. they get outdated FAST. If you get a nice amp it will be worth 90 percent of what you paid in a few years, your avr will be worth 10 percent of what you paid if you are lucky.... Not to mention avr's are not reliable, I have had a couple fail, and have heard of many...
Im not sure what the denon costs but even if its cheaper, I would spend a little more on the d1 dac and the amp.
I would rather see you get a stereo receiver over an AVR, I can not believe we are even discussing this........ AVR audio/
VIDEO Receiver... A4L has some good deals on Stereo recivers that will manage a subwoofer too...
http://www.accessories4less.com/make-a-store/item/YAMRS500BL/YAMAHA-R-S500-Natural-Sound-Stereo-Receiver/1.html and they have denons under $200