It really depends...if you are like me, listen to a lot of 2 channel with some movies, and cant afford two sytems, then seperates is/are the way to go.
I have lived with a rotel rsp-976 for about 2 years now. For the money its a solid performer. BTW, I couldnt tell the difference between the 976 and the 1066 with either movies or 2 channel. They are nearly identical in construction and share the same Crystal Semiconductor chips albeit with newer software for the 1066. Stereophiles guide to HT agreed with my ears...calling them sonically identical.
Anywho, the 1066 does give PLII and 7.1 outputs. I give the 1066/976 my vote. Outlaw is a good choice, cant argue with B & K either, but definately used, they are a bit pricey new.
I own the RMB-1075 currently and it has no sonic flaws, I would call it a very solid peformer for the money. I plan on keeping it. It does a fine job for center/surround and it leaves 2 channels open in case I want to venture into 7.1/or biamping the center with a rear center. Obviously it doesnt have the nth degree of resolution, and it is a litte laid back at low volumes. The 120 watt rating is very underated it has plenty of juice.
If you plan on upgrading, seperates will give you flexibility, where a receiver will not. Obviously if craming everything in one box had no sonic side effects there would be no preamps, amps, etc. You can expect better quality sonics from seperates. Cable hunting/evaluating is important with seperates, some hate it, I somewhat enjoy it. This is really a passion for me, but thats another story and thread perhaps.
I will say this....If I had the space and money for a dedicated 2 channel rig I absolutely would do it....and the Rotels would still be servering movie duty because they do a great job at it. Unfortunately I dont, so I am trying to balance the two.
(Disclaimer I will be selling my Rotel 976 here soon, since I have replaced it with the Bryston 1.7....but all that I said above is heartfelt, I had to spend a bundle to make small improvement)