Just for clarification the Crutchfield writeup about the Onkyo HTIB states the following:
"HDMI Inputs/Output: This unit has 2 HDMI inputs and 1 HDMI monitor output. The HDMI inputs are assignable to different input sources. The monitor output sends the HDMI signal to your display just as it's received (pass-through), but the receiver cannot decode the audio signal via the HDMI input so a separate optical digital, coaxial digital, or analog stereo cable must also be used. The HDMI version is 1.3 and will pass a 1080p signal."
The only thing about HDMI that is missing is the HD Audio. Anybody who has a receiver more than about a year old is in the same situation. Not getting HDMI HD audio is just one of the tradeoffs of this price range. You can't get everything for $1000 so you have to pick your tradeoffs. I honestly have never heard HD audio and I don't think it is anything to get worked up about. I don't know if it would be discernable at this equipment level anyway. The guy who was all pissed off at Onkyo said the system sounded good. The challenge is to provide a sound alternative at $1000 or less. If he had another $300 to work with you could go with the $1000 SVS 5.1 system and a suitable receiver and have a bang up system. But he says he only has $1000 and you have to respect that and make compromises accordingly.