I have a 1072 and enjoy it very much. I recently added a Squeezebox Touch and I cannot tell the difference between the two playing the same 16/44.1 song from the same CD, and in both cases using analog out. Yet the Touch provides so much flexibility plus ability to play 24/96 files that I now rarely turn the 1072 on at all. Even better value at $350!
My next step is an outboard DAC for both.
FWIW the rest of my system is Lamm LL2 pre, McIntosh MC275 amp, B&W804S speakers, Rel sub.