If you don't require 7.1, and some of the other trappings of the 1120K, why not consider 5.1 models too? Some of the advanced video processing touted by Pioneer on this model might also be something you do not need but are paying a little extra for w/ this particular model.
Keep in mind the second pair wouldn't constitute the extra 2 speakers of 7.1 over 5.1, FWIW. It's A/B switch for that application, or possibly zone 2.
I suggest you also look at older (read, last years) models from both Onkyo & Denon for their combination of price points/feature sets as well. One thing I do like on the 1120K is the front HDMI port (for hooking up HD camcorders, etc.). Nice touch, but of course this is most certainly not the deal breaker for everyone ;).
I am in the market for a new av receiver. Let me preface by saying that I know little to nothing about the tech. I am looking to spend around 500 and will be used for surrond sound 5.1 for my TV, PS3 and I do have two patio speakers that I would like to run independently from the main room. I was looking at the Pioneer 1120K, knowing that was the 2011 model are there any other suggestions? 1222k or 1122k. (I think the 1222K) is a bit more than I want to spend. Again suggestions would be appreciated.