I also have the 1120. My set up is:
LCR 2x RF-82 & RC-62
Surrounds 4x RS-42II
Atmos 4x CDT5800II
Subs 2x Paradigm Monitor 12
The 1120 handles everything very well - movies, games, music (streamed). I am soon going to 3x RF-7III's for LCR. I am tempted to go with a separate amp for the LCR but initially I will use the 1120 for all.
For music I don't use the "all channels" option but rather I usually use the Anthem Music setting that uses the additional speakers for room fill without taking away from 2ch imaging. Sitting in the sweet spot I don't really notice the other speakers but if I walk 12 feet back to the bar area the back surrounds fill and match nicely to the fronts. In "all channel" mode it is just too much from all the other speakers.
You can create a separate speaker profile for music listening and tweak the surround speaker levels to match your taste.