I purchased one in Sept (Newegg with Bluetooth dongle for $550) and love it.
I use it in a secondary system in the family room and it works just fine. I was moving from an 8yo Onkyo 898 (Component only) AVR. The 1120K gives me HDMI switching and I was able to simplify my wiring to a 42" LCD. With HDMI, this will allow me to add a BDP to this system soon.
I ran the MCACC auto cal and it gave me some goofy results, so I just did it manually and got it where I want it. I know I can revisit this and improve things later.
The iPhone stuff is cool/fun, but I have all my music on a server and use a Squeezebox already, so it's not a high priority for me.
I did DL the iPhone app to control the AVR to my iPod touch and it's pretty nice.