I too prefer the HK unit. As a present owner of the unit (H/K avr-247) I too made the same decision 6 months ago. At that time I also wanted the upscaling feature but presently don't require it. When I did use it (the upscaling) it was an improvement from the HD-cable box output (as the Scientific Atlanta boxes poor upscaling was apparent).
I would also look at the Onkyo, Denon and Marantz equivalents (in similar $ range) as they are very strong contenders. It really comes down to brand preference and little detailed features that set them apart. Don't let the lower wattage rating of the HK unit(s) steer you from it. It is plenty powerful and comparable to any decent receiver under $600 aside from used pieces.
The differences in sound from one to another is slight at best.
FYI,
H/K is in process of releasing a firmware update for thwe 247. I just got this reply from the support team regarding it:
"Hi Scott,
Good morning and thank you for your inquiry. We do not have a full list
yet as the firmware update is not completed. However, the main thing it
will fix is an LFE issue. It will improve video quality and HDMI
stability. It will also add 7.1 LPCM support as well as 1080/24p
support.
Once it is released it will be posted on our website for download. We
estimate it to be released within a month or so.
I hope this helps.
Best Regards,
Vu Le
Internet Support Specialist
Harman Consumer Group
Northridge, CA"
I am not actually aware of an LFE (sub-out) issue but some units might have had this. Other than that it is proof that H/K provides good support. Other than some reference pieces that the other manufactures make I am un aware of firmware upgrades that support them.