Overall rep's: Denon is better built. Onkyo is less expensive for the same feature set. Onkyo is easier to use; some Denon's are ok, and others might be an impossible labyrinth for some, depending on model.
FOR ME, the support for formats was essential. Narrowed down my choices tremendously. For you?
If you are using a ps3, you could not care less, for for the Denon. If you are using a Pana BD-30, you could not care more, hence Onkyo.
If you had all the choices in the world available, bitstreaming gets the nod. But I imagine the difference to be subtle, if not still discernable.
How much have you priced the 705 for? Depending, I highly recommend the 805 over it. I bought one only as a pre, and so Im not even using its best improvement, the near doubling of current, yet I still thought it was worth it. I did buy as refurbished directly from Onkyo. 51 lbs, 60 amps, Ultra2, BurrBrown DACs. 705 is maybe half the weight, Select 2, Cirrus Logic DACs. The 805 has zone 3, but I don't care. Both 705 and 805 have pre-outs, a must for me.
But again, your choice of BD player might decide for you!
Putting together a home theatre system. I've already purchased a 7.1 Klipsch Reference system consisting of 4-RB61 bookshelf speakers, an RC-52 center, two RS-42 side surrounds, and an RW-12d sub.
Now I'm looking for a nice receiver. Both of these receivers seem pretty comparable, but what are the advantages of one over the other? Price wise, they're similar. The Onkyo has one more HDMI input. Both support HDMI v1.3.
What about the processing? The Onkyo can do the new True HD formats found on some Blu-Ray discs, but is this really a selling point?
Help me out here!!