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Ultimately, which is most important is up to you. Personally, I'm not currently interested in getting audio from my DVD player (just a DD/dts bitstream) whereas I can imagine being lent TV recordings or suchlike on DVD-R in the future. If you want multi-channel audio as well as regular DVD playback, a universal player like the Pio will be better for you.
The Pio should have the better ultimate image quality but you may not be able to see the difference on your display device - I reasonably sure that I wouldn't due to the distinctly average scaler in the Z1.
HTH,
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