Can't speak for XT32, as I have no personal experience, but I own two XT equipped Denons, and am quite impressed. Where I think Audyssey really shines is in the blending of the various speakers in your room, via distance/delay and phasing calculations. I can't say for certain how much the room EQ is beneficial, but the delay and phase allow me to get good, solid, and seamless blending of two subs, in a room that has separate HT and stereo systems, with separate seating arrangements. (I.E. the same two subs are used for the '.1' content of separate 7 and 2 channel systems oriented along two different sides of the same room. The y-cable is swapped depending on which system i'm running at the moment, and each Denon is running it's own XT calibration)
XT32 is only supposed to be better.
Thumbs up from this guy.