This was basically my understanding of this also.My interpretation...
The key issues are:
1) Power amp goes into nanny/self protection mode far too easily - so the 120W/ch amp ends up as a 40W/ch amp. An issue with any 4ohm or difficult to drive speakers. (this has been an ongoing issue with the house of Onkyo/Integra/Pioneer)
2) The pre-amp / processor is OK - mid market stats - not fantastic on SINAD/THD+N, but not shameful either
3) Pre-Out distortion seems to happen when HDMI inputs are set to max volume - dropping it down to 90 sorts it out... worthwhile knowing! - but shouldn't be happening (should be sortable with a firmware update?)
4) Jitter on HDMI inputs (and on coax?!) ... thought this was sorted out years ago, but it is still there - on the other hand it is at a very low level - not likely to be audible.
5) Amp output quality is mid-low market... 77db SINAD
Positives:
1) Good Dynamic range (17.5bit+)
2) Good SINAD / THD+N if not exceptional - 97db, 0.0015% - Pre-amp / processor
3) Good clean Pre out V - going out to 3.5V - should drive almost any power amps easily
Basically this should be quite a good Pre-Pro... with internal amps used to drive Surround/height channels only
Good traditional do everything AVR only for those who have true 8ohm speakers
for the price I have paid I am extremely happy, if you look at it as a pure pre-pro with DIRAC and bonus surround + atmos amps its still a steal, some of the dedicated Pre-Pro's out there have very marginally better or even far worse performance from their pre-outs.
I plan to expand my system to include a 3-channel Buckeye NcoreX / Purifi for the LCR power.
I paid $2024 AUD (that includes our taxes and such), a Denon X4800H here is $4000...
I am confident that an RZ50 hooked up to a Buckeye 3-Channel NcoreX500 / Purifi for the LCR is a far better performer for the same price as that Denon, and the preouts perform the same.
Lucky my atmos height speakers are 8-ohm, and my rear surround are 6 ohm measured to not go below 5.5ohm.