Lets get back to the real world..
The point of weaker power power supplies applies more to the AVR categories priced <$999 and under which is 80% of the market. The higher priced AVRs SRP > $999 have higher profit margin and have more room within their BOM.
Basic economics drive the transformer cost, both iron and copper are the key elements and their world market prices have increased 3-5x in cost over the last 4 years....
Regarding specific coil windings, since the thinner 28 guage of copper vs. the thicker 20 guage, more turns of the 28 guage equals less copper use than that of 18 guage...
Less copper, lower cost.. The transformer wound with 28 guage can put out the same voltage output as one wound with 18 guage, but the thinner wire has poorer heat handling capability and will heat up/saturate earlier.. Basic physics..
Regarding iron, a higher content of recycled materials are used, and China is the biggest market for importing recycled metals...
To better understand the dynamics of component costs, one needs to understand the Chinese culture and market.. China as a country has little natural resources, so they must outsource, recycle and/or import the crucial raw materials. China continues to drive their exports, but check closely with people in the know and they will confirm the quality and reliability of components and finshed products built in China are typically of lower quality compared to those built in Japan. This is very obvious with the higher failure rates of Denon AVRs assembled in China versus those built in Japan, typically 2-3x higher...
Additionally, it is pertinent to understand the corporate reality of Denon...
A couple of years back, Denon enjoyed a top position in the AVR market.. Oursourcing the cheaper AVRs from China while building the mid-line and up in Japan..
Next, they decided to increase their market share and got very price aggressive with their AVRs..
Unfortunately in the process they increased their distribution channels to include many unauthorized internet and big-box sellers, and they lost the support of the installer specialist which was their most profitable customer. Also Denon is part of D&M holdings, which was totally stripped by the takeover by Bain Capitol (Mitt Romney), who promptly shredded their sales, marketing and engineering teams..
Just my $0.05...