Don't you mean worst time to buy a HDMI 1.1 receiver? That's the reason for buying something like this. If someone has to pick up a receiver now, or within the next several months, why spend $1300 on a unit that would be outdated in a few months? Grab something like this for $400 - $500, then upgrade in a few years. This will sell on the market very close to asking price in a few years.
Look at the Denon 3805. It's still fetching a solid dollar (over $600 B stock), and it's been out almost 2.5 years. Plus, the verdict is still out whether or not High Def players will take over standard dvd.
People may not want to rush out and buy $30 HD discs, or a $1000 Blu-ray player. Toslink and Coax still work well for digital surround sound - up to 6.1 discrete. This is an excellent AVR, that will weather out the HD storm and allow the market to cool down, and also allow pricing to come down to market pressures.
BTW, True HD and DTS HD handles up to 8 channels of discrete surround audio.