meateater,
I went through this same problem when I was setting up my new upper.
I would say to definitely go with a 1/7 barrel! The 1/7 will shoot anything the 1/9 can and it will let you step up to the good heavier stuff like the excellent 77 gr loadings.
IMHO, the accuracy you loose with the 1/7 when using the lighter bullets will be unnoticable but you'll definitely notice the accuracy loss with the heavier loads when using the 1/9.
If Bushmaster made a 16" 1/7 M4 barrel, and had it in stock, I would go with them but since they don't CMMG has an excellent alternative.
Yes, the CMMG/DPMS has a cast front sight but you can get Steve at ADCO to replace it with a forged one for $65. I would highly recommend this update to keep the upper mil-spec.
As with everything there seems to be a trade off. The Bushmaster with forged front sight a 1/9 twist and no M4 feed ramps[:|] or CMMG with the cast front sight a 1/7 twist and M4 feed ramps[:|]...
I felt the 1/9 twist was more of an issue than the cast front sight. The M4 feed ramps is also a plus for the CMMG upper and will help with reliability.
Going with the CMMG will cost a bit more due to replacing the sight but you will have a mil-spec barrel and have it sooner than waiting for Bushmaster to make a 16", 1/7 M4 barrel[%|].
If you'd like some info on the CMMG upper check out my experience with the one I purchased. See links below.
[url=http://www.ar15.com/forums/topic.html?b=3&f=12&t=162739] CMMG M4 project notes and pics.[/url]
[url=http://www.ar15.com/forums/topic.html?b=3&f=12&t=164401] CMMG upper reliability testing.[/url]