The only issue was with the whining noise. Even with the Q tube and larger hose, and allowing for a break in period of about 20 hours, the noise was a problem for my wife.
I had no problem falling asleep, so for me it was OK. I had decided to keep the Z1 Auto for business travel. My wife doesn't travel with me for business, and despite the noise issue, I felt that the compact size, and ease of travel was enough to have me keep the unit. Since my wife had the noise problem, I figured she could lug my Resmed AIrsense 10 Autoset with on vacation!

So... on to the Z2. I saw that the new unit was coming out, with the major improvement to be less noise, and also the addition of an auto on/off function.
I just received the Z2 Auto, and I can confirm that it is much improved. To be clear, there is still a bit of the whining noise during the transition from inhale to exhale.
I haven't slept with it yet, but in testing it today, it feels the same as the Z1, and almost as smooth as my Resmed unit. I'm not concerned about the unit's performance as a CPAP per se, but it will remain to be seen if my wife will tolerate the residual noise.
I showed the unit to my Brother and his wife today, and they both had no problem with the noise level.
The new Z2 units come with the Q-Tube muffler. That, and the redesign of the motor are significant improvements. I have opened a ticket today to HDM requesting to see if they can make a mod to the firmware. The "Z" units have an EPR (Exhale Pressure Relief) feature, that they call Z-Breathe. It allows 3 settings, Z1,2 and 3. Z1 is the lowest amount of pressure relief, and Z3 is the most aggressive. I don't use EPR on my Resmed, and I'd prefer to be able to turn that totally OFF. There is another benefit. The Z1 setting has the least amount of whining noise during the transition from Inhale to exhale. I'm sure that having a Z"0" setting, i.e. OFF, would make a further reduction in the noise level. When I called HDM tech support prior to my purchase, the woman told me that Z-breathe could be totally OFF. Actually, that was not correct. Hopefully, they can make this change. I'd rate this unit a solid 4 star for now, but if I could shut the Z-breathe off entirely, that would probably put this item as a 5 star.
I will the forum know what I hear back.