Krell S1200- Among the best sounding processors?

I do not know who your "legit source" is but he is entitled to his opinion even though it is not universally shared. There are a lot of good options at that price and less, including the excellent Classe. (BTW, I have not used the S1200, only the 707.)

Kal

Anthem would be my choice, Krell is big player in 2 channel but I think Anthem is a better player in the desired application.

Kr4. I truly have no bias and want opinions to help in deciding. My legit source carries B&W and hence could carry Classe but simply said that it wasn't competitive sonically to the Krell gear. I have no idea and can imagine some dealer bias at play. I have zero preference and just want the best audio possible. True story.

Try the Anthem D2V, it has great DACs, Room correction and serious video side aswell.

JFTR, you really won't know for sure, until you get one or both in your system, with your gear in your room! - and then you gotta tinker with it...set it up right, and spend time. All the opinions in the world won't answer all those points for you...not to mention your own personal preferences and tastes. (hey, we all own different gear)
Why not simply look for a used unit on the market, and buy one? Then, you can simply sell it back on the market, and get your funds back. Then, you can do the same with the other processor, and THEN YOU'LL ACTUALLY KNOW!
If you're a savvy buyer, you'll actually make money here! If you just pick up what comes along, perhaps you'll either get you're money back when you sell, or maybe lose a hundred or so. But big deal! You'll have paid a small price, if any, and gotten an education, and some experience.
Everything else is a whole lotta "he said, she said"...