The SP1.7 does what it does very well. The question is whether it does enough for you.
With hindsight I really wish I hadn't bought one, but that's largely because I ran out of money when putting my system together and didn't have enough left to be able to install heavy-duty acoustic treatments in my living room. Not being able to do that makes some sort of room-EQ system absolutely critical, and the SP1.7 doesn't have one.
The lack of Dolby Headphone is also a real pain for me, though I dare say it doesn't matter much to most people. Less significant niggles include the lack of video switching and the absence of any on-screen display (unless you fork out for the imminently redundant SPV-1), and lack of Dolby PLIIex (although this is supported on the SP2).
James Tanner says we will "eventually" get some sort of basic parametric EQ system on the SP2 (which could be used for primitive room correction), but he's very reticent about when; given how much time elapsed between Bryston's original announcement of the Aureus DSP upgrade for the SP1.7 and the time when it actually became available, I wouldn't beat all surprised if EQ on the SP2 takes 2 or 3 years to show up.
We also have no idea when any other upgrades for the SP2 might actually become available. We've been promised HDMI audio input, support for high-definition audio formats, etc. but no timetable. Again, they could be years away.
The basic sound quality of the SP1.7 is very good: clear, transparent, and neutral (especially in the front channels). It's not on a par with the Lexicon MC12B, but it beats most cheaper devices, and is comfortably ahead of (say) the Arcam AV8. The quality of the analogue bypass on the SP1.7 isn't quite as good as a high-end dedicated pre-amp, but it's miles ahead of that of any other home cinema processor I've listened to (the MC12B included) - that's probably its strongest feature.
So, basically it comes down to the feature list: if the SP1.7 does everything that you need it to do, you may be sure that it will do everything you need it to do very well.