The Onkyo has a two channel preout for a zone two stereo, but none for zone one. On the other hand, does your friend really need preouts? I'm guessing not. If he does, Pioneer's entry models offer preouts, but no HDMI switching. However, if the DVD player is the only input, he won't really need switching capabilities anyway. Finally, if there are other inputs that aren't HDMI, the 604 won't upconvert them to allow only one cable running to the TV. (The 674, however, does upconvert, but it costs at least $100 more.)
Ok, so I think I've come to the conclusion that at this price range, you should rule out HDMI switching. Here's what I would do since price is a major issue: I would get a Pioneer 816 because it's cheap, but reliable. If HDMI switching is something he really wants/needs, the left over money could be put towards an external HDMI switcher. In addition, the preouts on the 816 would allow a power upgrade if one was ever desired in the future. ...The best of both worlds.
Edit: The Onkyo TX-SR504 would also be another great choice if preouts are not in consideration.