I ended up buying the Yamaha RXV-573 from FS (on sale for $349) to replace my Denon 1708. I also considered the Pioneer 1022 and Denon 1713.
The Yamaha has everything I wanted and more - extra HDMI ports, 3D support, HDMI audio decoding, etc. No handshake issues, setup was super easy and I love the sound coming from this thing. We watched The Dark Knight Rises again last night just to try it out.