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I do not recommend ANY receiver! They will always compromise the sound with all of those extra features.
The problem with lower end integrated amps are that they are usually low power amps in the 30-50wpc range which is usually just all you need unless you have some inefficient speakers and you like to listen to dynamic music at loud levels. It would help to know what speakers he will be using.
I second the HK receiver. You can get the HK 3490 receiver with preamp out, bass management, phono preamp and dual sub out for about $400.
I use an HK 3480 stereo receiver on my wife's system. It's OK for her, but it sucks for any critical listening. A great sounding, tubed integrated amp with remote control for under $500 doesn't exist. Tell your friend to take his time, buy separates, and increase his budget by about $250.
I had a Jolida FX10 that was a great sounding little amp. It is in the price range and I preferred it to the 1501 which I owned, as well.